Delinquent Payments on a note

[Jake Langley]

I have a borrower who is always one month , or 2 months behind on Loan Payments for a note I hold. They are also delinquent in late fees. At what point can I start a foreclosure or at least present the idea of a Deed In Lieu. They never let it get to 90 days delinquent but its very frustrating. The property is in Nevada which has non-judicial forclosures.

[Andy Mirza]

@Jake Langley The note needs to be 120 days delinquent before you can start FC (record the NOD).

https://www.nolo.com/legal-encyclopedia/nevada-for...

Before you record the NOD, however, you need to send the borrower a breach letter, which is sent out at 90 days delinquency. Our servicer and the trustee handle all the notifications for us so that we know we're in compliance.

You don't have to wait to approach the borrower regarding a Deed in Lieu. If you think it's a viable option, contact them ASAP.

You're kind of stuck with a sub-performing loan until you can figure out a way to fix the problem or become willing to sell at a discount to another investor. Have you considered doing a loan mod for the borrower? The borrowers on most of the NPNs we buy try to stay in their properties for as long as they can while paying the minimum amount that they can get away with. There are a few, though, that are genuinely and sincerely trying to fix their problem.