Mar 23 • Case Studies 📑
Case Study: A $6,000 Mortgage, A Family in Crisis
This tape was originally offered in December 2024, and a fund purchased the entire pool. (Discouragement on my part)
At the time, I urged caution. The asset had a critical issue: delinquent property taxes with a hard deadline. If not addressed, the property could be lost to tax sale, with payment required by March 31.(the son in the home ended up paying the 2022 taxes)
The small UPB assets were later broken out and re-marketed. They were purchased AGAIN; this time by a different fund. (Irritation only part)
In December 2025, while discussing unrelated assets with that second fund, I asked a simple question:
“Do you happen to still have that small Michigan asset?” (Bulldog mentality on my part… never give up)
They did!
I was able to purchase it AT my original bid.
Initial Situation
- Deceased borrower
- Multiple heirs (2 daughters, 2 sons)
- No probate opened
- One son living in the property
- ~$6,000 unpaid mortgage balance to
- ~$2,000/year property taxes ($6000 total)
- Risk of tax sale looming
- The mortgage had matured!
On January 22, I reached out to the family.
One daughter responded.
The son living in the home was difficult to reach. (Actually, I never connected with him)
The Real Problem (Not the Mortgage)
This was not a financial problem.
This was:
- Grief (loss of multiple family members)
- Family tension between siblings
- No legal authority (no probate)
- Emotional overwhelm
- Fear of losing the home
The mortgage was only $6,000.
The complexity was everything else.
Negotiation Approach
Instead of pushing for payment, the approach was:
1. Label emotions
“It sounds like keeping your mother’s home is very important to you.”
2. Slow everything down
- Removed urgency language
- Allowed space for grief
- Let them “control” timing
Structuring the Deal
Rather than forcing one path, three options were presented:
- Incentivized Payoff (discount for speed) $1000 down payment and for every additional $1000 payment I would credit $1200 to the UPB.
- Traditional Payment Plan - $1000 down payment with monthly payment of about $300 per month until paid.
- Long-term property structure (tax + probate relief) - the lender would pay for probate, acquire a “ladybird” deed and pay ALL taxes (past and future) for a negotiated time.
PAYOFF
The grandson contacted the Loan Servicer, ACH for $5000 and a satisfaction has been recorded.
14.5 months of “work,” but really a bit of due diligence and patience tracking down an asset with about two months worth of work total.
$1500 purchase
About 500 in servicing and recording fees
I calculate that this is about a 250% ROI. (i’ll let you determine the annualized interest, two months worth of cash out lay)
And a family that has helped keep their brother in mom’s old home. They are working with the country and in a payment plan for the taxes.
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Case Study: A $6,000 Mortgage, A Family in Crisis
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