A Florida investor/developer saved his business and his credit by coming up with a creative solution to stop a pending foreclosure by his lender.
With completed condo projects in Florida not selling due to stricter lending requirements, the investor not being able to pay the lender what he owed, and the lender about to foreclose on the entire project, this investor acted quickly and decisively to find a win-win solution for all parties involved.
The investor approached his lender and explained his situation to them. Everyone agreed a foreclosure was the last thing anyone wanted. The investor would have ruined his credit, lost his equity in the project and faced a possible foreclosure. The lender would have probably ended up with inventory on its’ books that they did not want.
The lender allowed the investor to seller-finance the properties and took an assignment of notes receivable. This solution allowed the investor to sell the properties to customers who would not have been able to buy because of the stricter traditional lender loan requirements. The lender required the investor to have his notes serviced professionally by a licensed loan servicing company in order to facilitate the payment collection on the notes and in turn payment to the lender.
The investor was able to create some cash flow and begin making payments to the lender. This solution worked for everyone involved and saved an otherwise failed business venture which would have left all the parties involved with losses and would have left more empty houses on the open market depressing home prices in the area even more.
The lender turned a non-performing asset into a performing asset. The investor saved his business, his credit and the equity he had in the project.
At the center of the solution was Investor Loan Services, Inc. A professional loan servicing company, who helped coordinate payment collection from borrowers and payments directly to the lender.
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