What is a distressed note?

Hey everyone, I am here to answer.

The question, what is a distressed note?

As a real estate investor and anybody.

Anybody who lives in a house can actually understand this.

So when somebody buys a property, a.

House, we'll just keep it simple.

They get a mortgage generally. And that mortgage in banking terms is.

Actually called a note.

And what happens is banks are in.

The lending business, they are not in the real estate business.

And so their job is to lend.

Out as much money as possible because that's how they actually make money.

And so they create these notes or.

Otherwise known as mortgages.

And what happens is as long as the borrower continues to pay the mortgage and pay it on time, it is considered a performing note. What happens is over time, if the.

Borrower for whatever reason doesn't make the mortgage payments consistently, then what happens is it is called a distressed note or a distressed asset or a non performing note. So really all it is is just a mortgage that somebody hasn't been paying for whatever reason.

And what do banks do with that?

Well, banks, again, they are in the lender lending business, they are not in the real estate business. They actually are not set up to be able to negotiate with the borrowers.

To create a solution that actually has.

Their mortgage actually work. We as real estate investors, we do understand this business and we do have the ability to go in and help them get back on track and restructure it so that it actually works for.

Them to keep them in their home.

And by doing that, it keeps the communities intact, families intact, and that means everything to us. We here at Titan Impact Group, we.

Make sure that we leave every person.

Property and community better than we found them. So I hope that helps make sure.

That you like, click, share, comment and.

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Thank you everyone. Bye for now.