Risks Of Private Lending
We collect late fees that both act as a deterrent and a source of income should the payments be late.
EXTENDED TERM (LATE PAYOFF)
Yes, your money would still be tied into the note in this case, but you would still be earning the contracted APR.
Should this happen there are several options available to you:
1. Since there is an Assignment of Rents written into every mortgage, you can immediately begin collecting the rent. 99% of the time the rent is higher than the note payment and so you will likely improve your rate of return through the default.
2. We could ask to restructure the note. For example, let’s say we are behind on payments to you. Now, AryMing Asset Funding LLC can and would like to keep the house, but they can’t come up with enough money to bring you current in one lump sum. You could let us continue to make regular payments and make an extra payment on our arrearage in addition, or you could simply add the arrearage to the principal balance and extend the term of the loan. This means you would be collection interest on interest for the entire remainder of the loan. There is almost always ways to work it out if both sides are willing.
3. AryMing Asset Funding LLC would exercise their Deed in Lieu of foreclosure to take back the property to make you, the lender, whole.
4. You could sell the property. Of course, you will need to foreclose on the property, but because the borrowers are all investors and not owner occupants, they rarely fight to hold on to the property; they would rathera3 cut their losses and walk away. The foreclosure process is typically easy with investor borrowers. Once you own the property you could sell it if you no longer want to be a landlord or just desire profit rather than cash flow. Because the equity positions are at minimum 35%, you will likely be able to sell the property for a large profit and make more than you would have had the investor been current on their note. Foreclosure isn’t the evil, time consuming, costly legal process that most people think it is. It’s as simple as sending your note to an attorney and saying ‘do it’. All you have to do then is sit back and wait. Nine times out of ten, before foreclosure is complete, someone will be calling your attorney’s office with a payoff letter, and your loan will get paid off. When this happens, you will collect all accrued interest, your principal balance, and all attorneys’ fees, court costs, and all other expenses you have incurred in connection with your loan.
Please be aware that the name “integrity” has meaning for us, and that is what creates and holds our long term relationships with our investors. And because of thorough due diligence, to date, none of the private mortgage notes arranged by AryMing Asset Funding have ended in default and no property has had to be foreclosed on.