How First Note Solutions Evaluates a Note

Every note tells a story. We read it by examining six areas:

1. The note terms. Original balance, current balance, interest rate, payment amount, maturity date, lien position. These establish the baseline. A $200,000 first-lien note at 8% is a different conversation than a $50,000 second lien at 12%.

2. The default type. Technical (missed payments), maturity (balloon due), documentation (paperwork gaps), or something else. The type of default tells us which solutions are most likely to work.

3. The property. Location, type, condition, and estimated value. A well-maintained SFH in a liquid market has different resolution options than a rural commercial property. We look at the equity: what's the property worth relative to the debt?

4. The borrower's situation. Are they communicating? What caused the default? Do they want to keep the property? Do they have the capacity to perform under modified terms? A borrower who lost a job but found a new one is a different situation than a borrower who has abandoned the property.

5. The documentation. Do you have the original note? The deed of trust or mortgage? Payment history? Default notices? Solid documentation makes every resolution easier. Gaps in documentation don't necessarily disqualify a note, but they affect which paths are available.

6. Your goals. Do you want to maximize cash now? Preserve long-term value? Minimize your involvement? Get out quickly regardless of price? Your priorities shape which approach we recommend.

There's no formula. Every note is different. But we follow a consistent framework:

First, we rule out what won't work. If the borrower is completely unresponsive, a workout isn't possible. If there's no equity, a restructure has limited value. If the documentation is severely incomplete, certain legal remedies may not be available.

Then, we look for the highest-value path. Usually this means the approach that preserves the most value for the creditor while being realistic about the borrower's situation. A performing note is almost always worth more than the net recovery from a foreclosure.

Finally, we consider the creditor's constraints. Time, capital, risk tolerance, and emotional capacity all matter. The theoretically optimal path isn't always the right one if the creditor can't or doesn't want to pursue it.

Here's how the process works from your side:

1. Submit your note details. Use our intake form. It takes 10-15 minutes. We ask about the note terms, the default, the property, and what you're looking to accomplish.
2. We review and research. We'll look at the property, the market, and the information you've provided. This typically takes 3-5 business days.
3. We present options. We'll come back to you with our assessment: what we think the note's situation is, what approaches are available, and what we recommend. We'll explain the pros, cons, costs, and timeline for each option.
4. You decide. We don't pressure you into any path. You choose the approach that fits your situation. If you want to move forward with us, we outline the next steps and the agreement terms. If you want to think about it or go a different direction, that's fine too.

There's no fee for the initial evaluation. We make money when we successfully resolve notes, not when you fill out a form.

Transparency matters. Here's what we're not:

• We're not note buyers looking for a discount. We don't lowball you on a purchase and disappear. We work with you to find the best resolution.
• We're not attorneys. We don't provide legal advice. We work alongside your attorney or can recommend one.
• We're not collection agencies. We don't harass borrowers. We approach workouts as negotiations, not confrontations.
• We don't guarantee outcomes. Every note is different. We tell you what we think is achievable and work toward it. We don't promise results we can't deliver.