Deal Breakdown

1st Lien UPB of $21,952.96 + 4 years arrearages

$7,000 Purchase Price

$29,500 FMV

Loan Modification in 6 months of $194.26/month + $2,000 down

We picked up this 2 bed, 1.5 bath, 866 sq ft note from a hedge fund and made immediate contact with the borrower. Initially the borrower was in denial that we owned their note. Once they learned that we in fact did own their note, and that we were willing to help resolve their delinquency or foreclose on the property, they became cooperative.

Borrower was willing to bring $2,000 to the table for us to reinstate their loan payments of $194.26 per month. This resulted in a first year ROI of 45.2% ($2k + 6 months payments) for our Joint Venture partnership. The annual return for year 2+ will be 33.3%. This deal would qualify for a FHA 10-23 refinance as well as 97.5% of FMV.