FREQUENTLY ASKED QUESTIONS
1Why are notes discounted?
Notes may be discounted for a variety of reasons, such as the performance, value, condition and state of the property.
2What is a non-performing note?
A non-performing note is a debt instrument in which the borrower has stopped making payments. They usually become non-performing after a 90 days delinquency period.
3What is a re-performing note?
A re-performing note is classified as a note that was previously non-performing. It happens when the borrower agrees to a loan modification with the lender and consents to making regular payments.
4What is the difference between a note and a mortgage?
A note is the document used to promise repayment of a loan, while a mortgage is a lien against the property to secure a loan.