A : If the property goes into foreclosure, we will manage the process and keep all parties apprised of the progress. We will hire a foreclosure company that specializes in foreclosures. Their fees are added to the payoff amount and will eventually come out of the foreclosure sale proceeds.
If legal representation is necessary, each Investor will be required to contribute their prorata share of the legal costs (again, we manage this process through to the end). For example: you are a 10% Investor and 'upfront legal fees' are $5,000. You would be responsible for contributing $500. Regardless if the Borrower brings the loan current, pays the loan off or if it goes to foreclosure, your $500 would be added to the Borrower's fees and you will get the legal fees back. If we took possession of the property after foreclosure - albeit unlikely - each Investor would be responsible for their prorata share of the foreclosure and legal costs.