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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.

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