Through my company, 49th Parallel Properties, Ltd., I focus primarily on the purchase of performing & non-performing 1st mortgages on residential properties in the 50 largest metro areas in the United States.
My strategy is to purchase this mortgage debt (called a note) at a fraction of its current value (50% or less) and:
a) negotiate with the homeowner/borrower to get them back on track making their mortgage payments again, thus turning the loan back into a performing loan. Or,...
b) negotiate with the homeowner/borrower to have them leave the property via a "cash for keys" or "deed in lieu of foreclosure" scenario. This saves them from taking the large credit hit that comes from having a foreclosure on their record. Or,...
c) If the first two options do not work, we then start the foreclosure process and eventually sell off the asset at a profit, fix and flip it, or keep it in our portfolio.
Instead of rehabbing the property, my primary goal is to “rehab the borrower” and create a win-win scenario for the homeowner/borrower, the banks who wish to get the non-performing mortgage off their books, and my investors who make a healthy return by funding note deals.