When Is A Re-Performing Note A Performing Note?

[Christopher Winkler]

We are marketing some Re-Performing 2nd lien notes for one of our funds we buy from, and I consider any time a note defaults and starts paying as a Re-performing note. They have 18 months of "seasoning" and they say its performing after 6 months, and they use 12 months to call performing.

While opinions are like you know what's, I would like to ask the community what they think. 

Is a note that defaulted, then has been repaying for 18 months a Performing note or a Re-Performing note?

[Roma Korenyuk]

@Christopher Winkler, I'm not too familiar with 2nds, but when dealing with 1st position liens most sellers would consider 12-18mo of on-time payments as performing and will market it as performing.

A re-performing note would be a note seasoned for less than 12 on-time payments.

A under-performing note would anything that has missing or irregular payments.