Trust Deed Collection Philosophy

Our Collection Philosophy

Minimum investment is: $10,000

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In the lending business, collecting from a borrower is more of an art than a science.

We are happy to report that we have maintained a delinquency ratio among the lowest in the industry and over the past 9 years only 5 loans have actually gone to foreclosure sale.

Our collection philosophy is similar to our lending philosophy in that we try, in every case, to do what is best for both lender and borrower.

Obviously, our fiduciary commitment is to our investors and we will do whatever is necessary, within the limits of State and Federal law, to protect the investment.

As part of our practice, we stay in constant communication with our borrower. If the borrower is cooperating, we will make every effort to avoid foreclosure. We negotiate note modifications; forbearance agreements and go to the borrowers homes in order to get the borrower back on track.

When all else fails, we will proceed with foreclosure but we continue our efforts to bring the loan out of default. For us, foreclosure is a last resort. What we look for is a legitimate transaction with a reasonable rate of return for our lenders and a loan that will not threaten the loss of property for our borrowers.

In addition to monitoring the status of our borrowers, we also track the senior liens, taxes and fire insurance status. Frequently, if a borrower lets their mortgage payment go, they also get behind on other obligations.

It has been our experience that when you genuinely work with a borrower, allowing them to see we are not the enemy, that they are far more likely, in the event of foreclosure to leave the property undamaged. We even arranged “Moving Money”; paid in cash when the borrower is ready, having left the property vacant and broom-clean. This certainly provides an incentive for the borrower to move out quickly. This procedure is ultimately the best practice to preserving your investment.