Status update on Detroit note deal acquired on October 2016

On October we acquired a nonperforming note secured by a SFR in Detroit for 9,000.00 with private funds. The borrower was behind 5 months behind on her payments. The debt was discharged thru bankruptcy chapter 7. This limited our options. After a few hiccups with the services and recording the assignments, we sent a demand letter to start forfeiture or get a reaction from the borrower. She called us and expressed that she wants to keep the house. The reason she had to fall behind was due to a circumstance that was already resolved.

As our preferred exit strategy is to keep the borrower in their home we agreed to het making 4 payments for November thru Feb and paying some of the legal fees and we will work to get a new mortgage not affected by the bk and she will keep her house.

So far she has help her end of the bargain and we expect to receive payments equivalent to 3,600 a year for the remaining 14 years of the loan. I don't need my financial calculator to tell this is a great deal.

The FMV 29k,UPB 28.6k and rate 10%