Asset management
Distressed mortgage investing requires decisions throughout the life of the asset. We connect the initial underwriting to servicing, resolution and the eventual exit.
Establish the foundation
Review seller information, evaluate the collateral and develop indicative pricing around plausible resolution scenarios. Consider the relationship between purchase price, expenses and timing.
Examine collateral documents, title and lien position, payment history, servicing records and legal status. Refine valuations and assumptions as the supporting information is reviewed.
Coordinate the purchase documentation, collateral delivery and servicing transfer. Work with the servicer to establish the loan’s current status and support the next stage of management.
Determine the appropriate path
The borrower’s circumstances, the collateral and the economics determine which paths are practical. These are alternatives to evaluate, rather than a fixed sequence for every loan.
Where feasible, consider reinstatement, a repayment plan, sustainable loan modification, discounted payoff, a property sale or another consensual resolution. Assess the borrower’s ability to sustain the proposed arrangement alongside the investment economics.
When a workable consensual resolution cannot be achieved, assess foreclosure or other available legal remedies with counsel. Account for jurisdiction, case status, costs, timing and the practical requirements of the asset.
A resolution plan should remain responsive to new information. Servicing developments, collateral findings and legal events can change the available options.
Manage through disposition
The work continues beyond a modification agreement or a legal milestone. Each resulting asset requires an appropriate management and disposition strategy.
Monitor successfully modified loans as payments resume. Season the payment history and evaluate retention or a sale into the secondary mortgage market.
Where resolution results in property ownership, coordinate the relevant property, title and disposition work. Evaluate the economics of the path to sale or liquidation.
Gather the information and documentation needed for a loan sale, payoff, property sale or other exit, informed by the asset’s current position.
For asset sellers
Contact Equigrowth about a mortgage asset, portfolio or potential industry relationship.