Non-Performing Loans
We specialize in the purchase of NPL’s, known as non-performing loans for residential mortgages. These can be purchased by 5Star in bulk or as one-off properties and we consider all locations throughout Michigan and have a focus in the Metro Detroit area.
A loan is nonperforming when payments of interest and principal are past due by 90 days or more, or at least 90 days of interest payments have been capitalized, refinanced or delayed by agreement, or payments are less than 90 days overdue, but there are other good reasons to doubt that payments will be made in full”. By bank regulatory definition, non-performing loans consist of:
- real estate that is owned and taken by foreclosure or a deed in lieu of foreclosure,
- mortgage loans that are 90 days or more past due and still accruing interest, and
- loans which have been placed on nonaccrual
If you have a non-performing loan and what to consider getting out of it you should get in contact with 5Star.
When you choose 5Star your not just a simple transaction, you become a part of our family. We do whatever it takes to ensure your success.
NPL’s in Bulk
5Star Investments & Realty see a business opportunity in buying NPL’s from individuals or financial institutions with a discount. Our process is to normally pay from 1% to 80% of the total loan and become the legal owner (creditor). We determine the discount of the non-performing loan by the age of the loan, if it is secured or unsecured, the age of the debtor, if it is personal or commercial debt and the area of property(s).
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5Star Testimonial
“Dealing with 5Star has been a pleasure. They have creative ideas and get the deal “done.” They will continue to be a partner in our investment strategies.”
– Residential Advisors, LLC., Lansing, MI