Given the high volume of loans funded by our Investors, default situations are inevitable in the lending environment we operate in, particularly amidst the slowed sales and credit limitations impacting the present real estate market.  Ignite Funding is committed to attaining the best possible resolution on behalf of our Investors.  We have worked very hard in different market conditions to earn a favorable reputation in our industry, and we are confident that Investors will benefit from our experience, resources, and strategic decisions made on behalf of our Investors.

A:  Once a Notice of Default has been filed, the length of time until the foreclosure can occur is determined by the state in which the property is located.  For instance, the foreclosure period for properties in Nevada is approximately 120 days.  In general, during the foreclosure period the Borrower has the option to either “cure” the loan by bringing payments current, or pay the loan off in its entirety in accordance with the terms of the Promissory Note.  Due to the volatility of the current market, Ignite Funding may also work with each Borrower to determine the best workout plan. This may include proposing a reduced, but paid current, interest rate from the Borrower for a designated period of time with periodic evaluations of the Borrower’s progress. Should none of these options occur, the Borrower may face foreclosure. Through foreclosure, Ignite Funding takes possession of the property on behalf of its Investors and proceeds to market in an attempt to sell the property.  The time it takes to market and sell a specific property depends on a number of factors including, but not limited to, market conditions and buyer demand.
A: As each situation is unique, it is difficult to categorize all situations.  However, during the foreclosure period, Ignite Funding will continue to work for a resolution that is in the best interest of the Investors.  This may include posing for Investor ballot vote a forbearance agreement, under which the Lender and Borrower establish mutually agreeable terms to postpone the foreclosure in exchange for payments to re-commencing. Should the Borrower not honor the terms of the forbearance agreement, Ignite Funding would then pursue foreclosure of the property.
A: In some instances, a Borrower may file for bankruptcy protection to prevent a foreclosure from taking place. In this scenario, Ignite Funding may file and defend a Lift-Stay Motion with the Court to release the property from bankruptcy protection and allow Ignite Funding to proceed with the foreclosure.
A: Once Ignite Funding forecloses on a property, it will work diligently to take the following actions: market the property for sale; enlist the services of a broker when necessary; and negotiate sales contracts on behalf of the Investors recorded on the Deed of Trust.  All expenses of foreclosure, ownership, and property resolution are borne by the Investors. We will keep you informed throughout the process, and as always, our Loan Resolution Department is available to answer Investor questions.
A: There is not a defined answer as to a timeframe or amount. The time it takes to market and sell a property, along with the amount able to be recovered from a sale, depends on a number of factors. This may include, but is not limited to, market conditions, availability of financing and buyer demand.