Do you know a reliable company that can finance 1st NPNs?

[Pavel Sakurets]

Please share the name of the company that can finance non performing 1st liens. I know that Sharesates financed 1st liens, but they temp. don't

[Andy Mirza]

@Pavel Sakurets I don't know anybody who really does it. I know FCI or somebody affiliated with FCI was doing it several years ago but I don't think they do it anymore. From what I recall, the loans were offered at 12% similar to real estate hard money.

In my opinion, to make this kind of leverage work, you need something in the 4-5% range. Timelines to liquidation change too much unlike REOs or fix and flips.

We have one NPN in which the borrower filed Ch 13 BK and has been sub performing ever since. The trustee has been especially lenient and the debtor has been able to modify her plan three times. The last modification pushed out the payment plan for two more years. It's been three years and we haven't received a single payment on the arrears. If we had a hard money loan, we would have been killed on this one.