Identifying Strong Re-performance Candidates

Most note investors chase discounts — but the real money is hidden in borrower behavior.

• What you’ll learn:

• Why second liens behind a current first mortgage signal “emotional equity” and high workout odds

• How pay strings (like 12 straight “1s” or rolling 30s) reveal discipline vs. distress

• Why rising FICO trends expose borrowers already recovering—and ready to reperform

• How small balances and the “1% payment rule” quietly boost modification success rates

• How speed to respond, equity, and life events create “layup payoffs” hiding in plain sight