True Investments LLC recently acquired $11.3 million in nonperforming residential mortgage loans with the goal of modifying borrowers and improving affordability through principal and payment reductions.
The acquisition is part of $100 million in capital the Newport Beach, Calif.-based investment firm has committed for 2013 to acquire single-family REO and nonperforming loans, as well as a small balance of commercial loans.
“Keeping a borrower in their home is our top priority. We believe that, in most cases, the current owner is the best person to be in the home and many of them are relieved at the option of staying,” said Twila True, president of True Investments.
Mortgage loans that ultimately cannot be modified are moved into True Investments rental or seller finance programs. Currently, the firm has a growing portfolio of single-family rentals in markets such as Pittsburgh, Indianapolis, Rochester, Cincinnati, Atlanta and Dallas. As part of the seller finance program, private loans are offered to borrowers in situations and communities where traditional mortgage loans may be difficult to obtain.
In addition to the $100 million in capital that True Investments has available, the firm maintains a significant deal pipeline in its management business that presents several investment options for its clients.
“We realize that financing is very difficult right now for new and former homeowners who have fallen victim to the current economic collapse, and we want to provide tools to help them get back on their feet,” Tate added. “We have created our True Affordable Housing program with this in mind and are offering ways for credit-challenged homeowners to experience the pride of homeownership once again.”
