Palomar Note

● Exit Strategies for our non-Performing Note Deals


● ● ● The Note holder has the Most options...

Once an investor purchases non-performing loans, they have to decide how to make money on the note. The borrower is not making payments and they may or may not be living in the home anymore. There are many options to pursue with these notes, all of which can be very profitable. Since the investor owns the note, they can be very flexible in working with the homeowner to help them stay in the home Or they can....

1. Loan Modification (Trial)

 A modification is a structured agreement where one or more terms of your mortgage are changed to help you to bring your defaulted loan current. This can be in the form of adjusting or lowering your payments, interest rate, and/or principal balance. You get a more realistic and affordable mortgage and monthly payment while improving your credit and getting back on track as a home owner.

We also work closely with lenders who may be able to refinance your loan. There are several federal programs made for homeowners experiencing hardships that can help! 

2. Deed in Lieu OF Foreclosure (DIL)

 A Deed in Lieu of foreclosure occurs when you agree to sign over your Real Estate (the deed) to Seasoned Funding, LLC in lieu of a foreclosure.

This is an excellent option if you do not want to stay in your home or have already moved out. It is important to note, this is not always an option, as you cannot have any encumbrances on your title (such as a 2nd mortgage, lien, or judgement).

​This is a quick and easy way for you to move on from the home and start focusing on your future! Secure your retirement by investing in Notes.

3. Forbearance Plan

 A forbearance agreement is a written agreement that reduces or suspends payments on your loan for a limited and specific time period. During the forbearance plan, we forbear (do not start) initiating foreclosure action and in exchange, the plan requires you to follow through with one or more of the following to prove your ability and interest to repay again;

  • lump sum payment
  • reinstatement payment
  • repayment plan

This is a great option if you do not the ability to repay your past due amount upfront! 

4. Cash for Keys

Have you opened a new location, redesigned your shop, or added a new product or service? Don't keep it to yourself, let folks know.

5. Foreclosure

If an investor has tried a loan mod and a short sale but nothing is working, foreclosure might be the only option. If you are considering buying non-performing loans, always calculate profits based on the worst-case scenario, which may be foreclosure. In states with easy to complete foreclosure processes, the foreclosure costs can be $5,000 to $7,500 on a low-value property. In states with a longer foreclosure process, the costs can be much higher.

The nice thing about foreclosure is, once the process is complete the investor owns the home and has complete control over it. The investor can Rent the Home, Sell it as Is, Fix it Up, or even price it low enough at the foreclosure auction that another investor will buy it. One very important thing to keep in mind with a foreclosure is the state laws where the property is located. In some states, you can foreclose in 45 days or less, in other states it can take over two years to foreclose.

● ● ● Here are a few more strategies that gives the Note Holder all the Leverage

→ Sell as a Re-Performing Note

→ Resell the Loan

→ Get a Cash Payoff

→ Short Sale

→ Wholesale the Loan