Performing to Non-Performing · Real Estate Note Investors

Nov 1 • General

Performing to Non-Performing

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.

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