Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax Liens & Mortgage Notes
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago,

User Stats

80
Posts
17
Votes
Jeff Smith
  • Real Estate Investor
  • Lubbock, TX
17
Votes |
80
Posts

At a cross road - What would you do?

Jeff Smith
  • Real Estate Investor
  • Lubbock, TX
Posted

Hello fellow note investors,

I am wondering what a seasoned note holder would do if you were in my shoes. 

I have a note that is non performing. It's in my backyard, I have it boarded with Peak Servicing (which you probably know is closing their doors) It was a slow pay performing note when I bought it, they stopped paying because they seen a way to take advantage of this issue --> we needed to take a verbal agreement that the note seller (who I bought from) and the borrower had lowered the interest rate from 8% to 6.5% so the whole time Peak is trying to get this simple mod done, they stopped paying, stopped responding to Peak's letters emails and voice mails. So the mod never happened, the only thing they had was a hand written note of the change on the top of the promissory note. (which I also had because I have the original note from the seller) Peak said I could except that if I wanted to and forget the mod. So I had Peak make a deal that I would except that and forget the mod if the borrower would pay up all missing payments and get current. roughly $4k

They had told Peak that they had all the payments that they didnt make ready to pay but were nervous about the loan mod, were confused, didnt understand, etcetc. 

Well weeks went by and finally they made a payment of $1100 - So I had Peak try to reach out to them to find out whats going on, where the rest of the payments are, and got no answering the phones, no responding to letters, no returning calls, nothing so I told Peak to send a demand letter. 

They did, its 30 days to pay up or we start foreclosure. 

So hear is where my cross road is now, the 30 days is up - What would you do? (Remember Peak is closing their servicing doors) I have talked to other servicing co's and they really dont feel to good about taking this loan in the middle of the issue, or they want to charge hundreds to pick it up, or they want to start all over from the beginning. 

So would you take it into your own hands and contact the borrower yourself? (What I am thinking about doing).

Put the foreclosure off and board somewhere else? 

Foreclose with Peak (I think they will still see it through) 

Maybe take back as REO and deal with that?

Thanks for your help

Loading replies...