Workout Resolution
Active Partnership with Borrowers
As a direct lender, we maintain an active and ongoing relationship with our borrowers from pre-screening to loan maturity. Our goal is not just to ensure the loan is repaid, but also to add value to our borrowers throughout their investment projects. By offering guidance and support, we increase the likelihood of successful repayment and build lasting partnerships that encourage borrowers to return for future projects
Delinquency Process
Proactive Loan Management and Delinquency Response​
We take a proactive approach to loan management, ensuring early intervention when payments are missed:
Missed Payment (Immediate Action)
We reach out immediately to borrowers, encourage automatic payments if not already set up, and flag the loan for high-priority monitoring.
30 – 60 Days Delinquent
If the payment is 30 to 60 days late, we increase communication efforts through both phone calls and emails, discussing possible resolution options. We reassess the borrower’s liquidity and may temporarily halt future funding, while also sending collection notices and insufficient funds notifications.
60 Days or More
If the loan is over 60 days delinquent, we conduct a thorough review of the project’s progress and the borrower’s financial situation. We also reassess the property value to determine the best course of action. Once a strategy is identified, we engage counsel, issue a notice of default, and proceed with one of the following options:
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Loan modifications
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Deed-in-lieu
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Foreclosure
Workout Options
Loan Modifications
Creation of a modified payment plan with considerations like forbearance and interest rate reductions can resolve cash constraints and pain pressures in the borrower while allowing them to reach project completion and repayment
Deed-In-Lieu
The borrower is released from outstanding debt and any personal guarantees in exchange for the property. If a project is not completed, our partners at third-party construction companies would manage the completion of the project and then would be sold to recover outstanding debt
Foreclosure
File notice of intent to foreclosure, issue a sale notice, hold foreclosure auction and sell property to recover outstanding debt