What happens if the borrower defaults on the loan?
Last Updated: Dec 15, 2015 04:50PM EST
If a loan should find itself in a troubled situation or fall into default, GROUNDFLOOR has all of the rights and remedies available to liquidate that asset. Our position is get you your money back in the most efficient way possible. We have a vested interest in that as our reputation in your hands.
Our Borrower Services Team connects with each borrower prior to the repayment date. If the loan appears to be in a troubled situation, we initiate a process to assess the situation and explore recovery options. The first step in that process is to secure a construction completion report outlining the completion of the project and associated costs to complete. After some evaluation, a decision about repayment or other action is made. The next step is to secure an appraisal to learn the current value of the property and the projected value upon completion of the project according to the market at the time. After further evaluation, we make a decision on the next steps toward recovery.
In addition to being in close communication with the borrower and inspecting the property on a regular basis, we increase our level of communication with investors in the project to ensure the latest information is relayed in a timely fashion.
WE MAY SOLICIT INTEREST FROM RESIDENTS OF A LIMITED NUMBER OF STATES: MA, MD, DC, VA, GA, IL, TX, WA, CA
The information on this website does not constitute an offer to sell or a solicitation of an offer to make an investment (the “Investment”) in the limited recourse obligations (or “LROs”) described herein in any state or jurisdiction in which we are not qualified to do so. No such offer or solicitation will be made prior to the delivery of definitive documentation relating to the matters described herein. All Investments carry risks. Before making an investment decision with respect to an Investment in a particular series of LROs, potential investors are advised to carefully read the investment agreement that will govern the Investment and the related subscription, solicitation of interest and offering circular documents (the “Documents”). You should consult with your own attorneys, accountants and other professional advisors prior to making an Investment.
This overview contains a preliminary summary of the purpose and principal business terms of the Investment. This summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussion contained in the actual text of the Documents.
ANY PROJECT SPECIFIC INFORMATION ON THIS WEBSITE MUST BE READ IN CONJUNCTION WITH THE OFFERING CIRCULAR IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE OFFERING CIRCULAR MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING.
Disclaimer: Neither the SEC nor any state securities commission or regulatory authority approved, passed upon or endorsed the merits of the offering described in the Offering Circular or reflected on this website.
GROUNDFLOOR’s services do not constitute “crowdfunding” as described in Title III of the Jumpstart Our Business Startups Act (“JOBS Act”).