Non-Performing 2ndSACRAMENTO, CA

PendingN2USCA5368GS

NON-PERFORMINGSFRNO EQUITY2ND LIEN

SACRAMENTO, CA, 95829

Owner-Occupied · SFR

UPB$148,577.9

StatusNon-Performing

Borrower

Who

OccupancyOwner-Occupied

FICO769A

Senior Obligations

Senior Lien$326,548CUR

Taxes—UNK

Legal Status

BK / FCNone

Borrower LTV

LTV41%A

Property

TypeSFR

Equity Waterfall

Property Value$362,967.5

minus:

Taxes$0

Sr Lien(s)$326,548

equals:

AVAILABLE EQUITY$36,420

Subject UPB$148,577.9

EQUITY COVERAGE24.5%

NO EQUITY

BorrowerProperty

100%50%100%

66%

✓Owner-occupied (motivated to keep home)

✗Severely delinquent (90+ days)

✗No equity (borrower likely to walk)

✓Current on senior obligations

✓FICO 769 (may refinance)

⚠CRITICAL FLAGS2

Potential SOLLegal

Unknown Payment HistoryBorrower

YOUR DEAL

Purchase Price

Est. from NPL pricing

Target Yield

Investment Goal

Hold Period

EST. VALUE

$44,57330% of UPB

EquityNo Equity+0%

PaymentNon-Performing+5%

OccupancyOwner-Occupied+10%

LegalNon-Judicial+15%

Total30%

Deal Score

Very strong deal — favorable risk-reward profile

Risk Breakdown

Equity100

Borrower42

Market94

Timeline82

% of UPB30.0%A

LTV40.9%A

Equity$362,967.5A

ICTV12%A

Net Recovery$104,004.53A

State Intelligence: California — Sacramento County Public Records

ProcessNon-Judicial

Timeline3 - 5 Months

FC Cost$2,140

REO Cost$4,650

RedemptionNot Likely

⚠ Redemption period: Not Likely. Borrower may reclaim property after sale.

Exit Strategies

Strategy projections are estimates based on market data and historical outcomes. Consult qualified legal and financial advisors before making investment decisions.

★ Loan ModificationCash FlowA

ROI395%

Yield79%

Timeline60 mo

Success40%

Est. Profit$176,015

IRR57.9%

Why it works

Borrower keeps their home; investor receives 5 years of cash flow plus full payoff of remaining balance.

Key risk

Re-default risk is meaningful; borrower may stop paying again within 12 months.

Calculation

60 payments of $1,293 ($77,575) + payoff $143,392 + arrears $0 - purchase $44,573.37 - holding $379

Action Plan

1Contact borrower to discuss modification options

2Evaluate borrower's income and ability to pay

3Structure modified terms (30-year amortization at 9.9%)

4Execute modification agreement

5Monitor payments for 3-6 months to confirm re-performance

6Collect payments for 60 months, then borrower pays off remaining balance

ForeclosureEither217% ROI · 10mo · 70%

+$96,583

Deed in LieuEither591% ROI · 6mo · 20%

+$263,570

Fix & Flip (Mod & Sell)Hybrid233% ROI · 6mo · 30%

+$103,850

Full PayoffLump Sum233% ROI · 4mo · 10%

+$103,752

Discounted Payoff (DPO)Lump Sum83% ROI · 3mo · 25%

+$36,955

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