Re-performing loan
A re-performing loan (RPL) is a loan that was seriously delinquent or in default and is now being paid again, often after a modification, forbearance or repayment plan.
How re-performing loans are priced
A re-performing loan has a current payment record, but a history of default. Buyers look at how long the borrower has paid since the cure (often six or twelve months of on-time payments), what changed in the loan terms, and whether the cause of the default is gone. RPLs usually sell at a discount to similar loans that never defaulted.
Why it matters to a private lender
Curing a default and selling the loan once it has a new payment record is one way out of a troubled loan. Buyers will ask for the full history, including the default and the modification documents.
On Lender Capital
On Lender Capital, a re-performing loan is sold as a sub-performing loan: its earlier delinquency is disclosed and the buyer buys it as is. See sell non-performing notes. On Lender Capital, private and hard money lenders sell whole, first-lien, business-purpose loans they originated and funded, performing or not (no seller-financed notes or land contracts): a capital partner buys the entire loan and the sale settles through an escrow agent. Lender Capital never lends or buys loans with its own money. See sell your loans.
Where Lender Capital fits
Lender Capital places first-lien, business-purpose real estate loans with capital partners. You apply once, then submit each loan with the full file. We send it only to capital partners whose criteria it fits, one partner funds the whole loan at closing and it is assigned to them. You keep your points (less the placement fee), earn the spread above the partner’s rate and service the loan. You pay a placement fee only when a loan funds.
Lender Capital is a business-to-business platform. This page is general information, not legal, tax or securities advice. Terms of warehouse lines and other funding sources vary by provider; confirm them with each provider and your counsel.