This section gives an overview of what we do, and how it all works. Please click on the question below to read the answer.

Who are you guys?

We are a for-profit investment company and we purchase single family homes, condos or townhomes with delinquent or distressed mortgages. Thru a simple sales process, we take title "subject-to" the underlying defaulting mortgages and we conduct an "arms-length" transaction with Sellers. This allows the seller to move on from the property and all the trouble it represents.

Next, we employ powerful legal defenses and tactics on our own behalf, (as new owners), to further our goal, which is to purchase the first mortgage note. We purchase these notes at a significant discount for the purpose of making a profit for our company.

We are not a law firm, and as such, we do not practice law. However as the new owner of the property, we use our internal legal department consisting of paralegals, law clerks, and senior staff to leverage the banks risk perception in a way that is simply not available to most homeowners. Our powerful strategies tilt the balance of power in our favor. They give us the leverage needed to negotiate a settlement on the mortgage note with the lender.

What happens after I sell my property to your company?

Our final goal is to purchase the first mortgage note at a discount. By challenging a foreclosure lawsuit, and forcing the lender and foreclosure law firm to comply with the law, our aggressive loan challenges can make life miserable for foreclosure mill lawyers.

We employ many different legal tactics. Once a new property is purchased by our company, we do a full and detailed analysis of the mortgage by ordering the original loan documents. Depending on whom the lender is, and the type of loan, we look for errors or other violations, or predatory lending practices that may have taken place. Mortgage companies routinely broke the law and violated consumer protection during the mortgage boom.

Some of the areas we look for include violations of TILA (Truth in Lending Act). Some loans may qualify for rescission; others may have violations that we leverage against the banks, even as we are making them an offer to purchase the note.

HOEPA (Home Ownership and Equity Protection Act) is another area that we look at. This is a section within Regulation Z of TILA that contains stringent rules associated with refinance loans considered high cost. These high cost loans require an extra layer of disclosures that lenders often did not give the borrower.

Our tactic may include lender disputes such as; Failure to provide a correct notice of the right to rescind, failure to produce the Note, failure to verify income or assets, predatory lending, a defective Mortgage or Note, insufficiency of process, lack of standing, failure to comply with pre-foreclosure requirements, servicing abuse, failure to establish conditions precedent. We also look for possible violations of RESPA, the Fair Debt Collection Practices Act (FDCPA), problems with the Mortgage Electronic Registration Systems, (MERS), and a myriad of other tactics all designed to give us tremendous leverage with the bank in negotiating the purchase of the first lien mortgage.

When can I move on from the property I sold you?

Our acquisition process is fast and is completed in just 10 business days. How is this done so quickly when there is a mortgage in place?? By purchasing the house "subject to" the underlying defaulted mortgages. This means, the defaulting mortgages technically remain in the sellers’ name, while our company holds equitable title until we complete our final acquisition of the note.

Some sellers have a difficult time emotionally disconnecting from the sale of a home and can remain emotionally connected to a property, even after they have sold it to our company up front. We want to assure you that once the sale is complete, you can move on. We will contact you if needed, and we also give you access to monitor the process thru our status system. We start work immediately on the mortgages once we have possession of the property. If a seller is not comfortable with our process and the timelines, then we prefer you pass on the sale. The note acquisition process is an arduous process, and is not the right solution for everyone. It is like a slow motion tennis match, with legal challenges back and forth from the lender to our company until we gain the leverage needed to reach a settlement. The process typically takes 12-24 months to complete.

What happens when I send you my package?

1. You will receive a phone call and an e-mail from our Intake Department, acknowledging the date that the package gets logged in to our system. (Please allow up to 48 hours after your package lands for it to be posted to our system). Then you will be assigned a personal Acquisition Specialist. He or she will then call you as soon as possible to do a telephone interview.

2. Your Acquisition specialist will review the details of the file, and also make sure all of the information is accurate and that all your questions are answered before you proceed. Then we send the property to research. During this 3-6 day waiting period, we will be verifying information, reviewing photos, arranging for inspection, verifying title information, verifying ownership information, and a series of other proprietary research and review that we conduct in order to make sure that your property will fit our investment guidelines. A few business days later we determine our final Acceptance or Denial of the property. The whole process should take 10 working days, or 2 weeks including weekends.

3. If your property is accepted, we will complete the paperwork and your final closing documents will be sent. (Please allow 2 weeks for processing and mail time). This package contains all of the countersigned documents necessary to complete the arm's-length sale including a check for consideration in the amount of $10, a final HUD-1 Closing statement, and certified copies of other important documents. At this point we become the Legal Equitable Owners of the property and we take over from there.

4. Possession Since possession is such a strong concept under law we must have physical possession of the property. We do not consider the sale final until we have full physical possession, nor do we begin any sort of defense strategies. It is very important that you assist us to gain physical possession of the property as quickly as possible. Our possession department will contact you personally and he or she will coordinate with you the details of possession. In most cases we will send you a lock-box by express mail that may be installed on the property. The property is expected to be in reasonably clean and "broom swept" condition and in full operating order. (If we discover material facts, defects, or other substantial information that was not disclosed, we reserve the right to return the property back to you at no cost to you. So please be honest about the condition.)

What actions do you take after closing?

A Cease and Desist letter, in Accordance with the Fair Debt Collection Practices Act, with new contact information will be sent to your lender within 5 business days of our final closing. This should stop your phone from ringing from the collection department of the banks. We ask our sellers to please be patient as the cease and desist orders usually take between 4-6 weeks to take effect with the lender. If after 6 weeks you are still receiving calls from the lender please contact us with the details and phone numbers or mailing addresses of the calling party. We will be happy to resend another Cease and Desist Letter to the Lender, as sometimes it takes more than one attempt.

We will be mailing the lender a change of contact form, which you have already filled out as a part of your package. This will direct the lender to send our company any and all correspondence and legal notices so that we may respond from here forward.

Some lenders will send a verification letter to the borrower of record, to the last known address for security reasons. If you receive a letter from the bank asking you if it is all right to change the address, please authorize the change and mail back the form to the bank as soon as possible.

We will contact the lender and ask that all calls and correspondence is directed to us. It is important that you cease all communications with the bank, both verbally and in writing. In some cases sellers can accidentally harm the note acquisition process by making statements to the lender that are contrary to our ongoing negotiations. If you accidentally wind up on the phone with the Lender please don’t panic. we ask that you simply say, "This account is being handled by a third party. Please cease and desist all communication with me".

Due to increased vandalism, maintenance, and growing lenders occupancy requirements, we have implemented a very successful "Caretaker Tenant Program". This program insures that someone is always occupying and maintaining our properties, and helps to offset our significant legal and administration costs.

It is important that you understand that the property must remain in delinquency status in order for us to have leverage over the bank. During the note acquisition period, we do not pay the following items:

First Mortgage

Second Mortgages

Property taxes (added to principal)

Insurance (forced placed coverage will be placed)

HOA dues

How long does it take?

Completion Time Frame and Getting Updates

Please be patient. On average, most Note acquisitions are completed within 12-24 months, or less. Some loans are more challenging to acquire than others, for a myriad of reasons.

Once you sell your property to our firm, we begin our work in our Legal Department. As you can imagine, the note purchase process is complicated. Due to the volume of legal challenges that the banks are receiving, and the legally permitted response time for banks to reply to our motions and inquiries, we are seeing the note purchase process take anywhere from 12-24 months. In some cases we are able to settle a bit quicker.

You should be patient with the process, as it takes some finesse, and attention to detail. We cannot control the time line of events because each case is unique, and we can’t simply tell the banks to "hurry up". Since we do not realize a profit until we are successful, we are just as anxious as the seller to finalize the note purchase.

Could it go to foreclosure?

We want you to clearly understand the risk factors that are involved, and let you that know we share the foreclosure risk with you. We make a significant investment of time and money in each property we buy. We don’t like to lose to the banks because it represents a significant financial loss to our company. Our profit motive, and the fact that we don’t profit unless we are successful is a good thing for you as the seller.

If the loans are delinquent, the foreclosure process has most likely already begun at some level. At some point during our ownership, a formal foreclosure could be initiated by the bank, and a foreclosure sale date may be scheduled. If you receive documents regarding a future foreclosure sale date, be assured that we handle this sort of thing every day, and we routinely halt/postpone/cancel foreclosure proceedings as a matter of our daily activity.

Although we are very successful, we cannot guarantee 100% success in all of our dealings. It’s important that you understand that the risk of foreclosure is an ongoing risk and that despite our best efforts we may not be successful in acquiring the note. We share the risk with you, as we are highly invested in each property that we own. Once we invest in a property, a foreclosure represents a significant financial loss for our company.

Our legal staff closely monitors all of our properties, and the status of any foreclosure sales, and will intervene as necessary. You can be assured we have a very sophisticated tracking system which allows our staff to monitor all communications weekly, as well as routinely check on foreclosure proceedings and sale dates. If you receive a legal notice, fax it to our legal department at 253.883.3586.

How can I find out what is happening?

Although we would love to, we simply don’t have the manpower to give telephone updates to former owners. Due to our workload, and our focus on daily operations, it is literally impossible to give each seller telephone updates on our properties. However we have a STATUS system where you can log in see property information. You will be given access once the sale is complete. There is also a support ticket system where you can get real answers from a real person. Click here to access our Support System

What if you are unsuccessful?

One of the most frequent questions that we are asked is "what happens if your company is not successful in acquiring the note?" As we fully inform in advance, we are not 100% successful with our note acquisitions. There is always a chance that the lender may set a foreclosure sale date in, order to preserve their legal timeline, (even in the middle of our legal challenges). Be assured that we utilize every tactic and strategy possible to avoid this scenario, as any foreclosure results in a significant financial loss for our company.

As a guarantee to you, the seller, we promise the following:

If the bank sets a foreclosure at a future date, you will be contacted by our legal department and be notified. At that time, we will review the file and assess the ongoing risk vs. reward, and weigh all the options with you at that time.

Bear in mind that a foreclosure sale being scheduled does not mean that we are not performing our work, nor does it mean the property will ultimately be foreclosed. We routinely stop and halt foreclosure sales in order to allow us time to complete the note purchase.