Kind of excited today. Just took the first steps towards getting my seriously delinquent loan back on track. Reached out to the servicer to get options for sending the borrower a re-instatement proposal and stated my willingness to accept payments from the BK case to cover the arrears and past due payments... I've never been through this process, so kinda feeling my way through it. It's my understanding they can take the arrearage amount and add it to the BK case and the trustee can make payments towards that amount until its paid off. This will allow the borrowower to focus on the BK payments and keeping the monthly payments current on the note. It will also increase the monthly income from the note as now I may be getting 2 payment streams from this note... if all goes well and I understand the moving pieces. My next steps are if this process fails, then I can file a motion for relief from stay and remove the BK protections and proceed with the demand letter and begin the foreclosure process. I'm hoping it doesn't come to that, but that's my understanding. If anyone has feedback or sees anyting I'm missing or misunderstanding please chime in and we can all learn together :D Cheers and have a great day!

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The first note I ever puchased is on the verge of becoming seriously delinquent. I've never been through the process of getting a note re-performing. I'm curious, once the borrower crosses the 90 day threshold, what would be your first move to bring the borrower to the table? The borrower is in BK 13 currently and I have already advanced the taxes, FPI and attorney fees for the Proof of Claim. I know my next steps will be doing a post petition filing for the updated advances since the BK began and then Motion for Relief from Stay. At this point the borrower will need around 5k for reinstatement. My question is, would you tell the servicer not to accept partial payments and then proceed with demand letter next or is there a better way to bring the borrower to the table and help them to get back on track? I'm open to suggestions for next steps. (Note and collateral is in TX) Also, I'm not interested in selling the note; I'm looking to gain experience from the process of working out a non-performing loan.

How do you scale your note business once you have exhausted your initial stack of seed capital? Is there a way to make a living doing notes without already having a ton of capital?

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