Dundalk, MD - Non-Performing 2nd Mortgage Note (Loan Mod Case Study)

This non-performing 2nd mortgage was purchased in February of 2026 in Dundalk, MD, in a pool of 10 loans. The property is valued at $195k, with a $98k current 1st mortgage. Shortly after the loan was purchased we had an attorney send out a legal demand letter. This was another good one, with a fast resolution.

The borrower reached out during the 30-day demand period and wanted to get back on track.

I have a great two page form that I use to send borrower's loan modification options, it allows me to control the deal (Option's template here for Mastermind Accelerator members) to get non-performing note deals done faster.

The 2nd mortgage unpaid principal loan balance was $12,268.67, plus they owed us another $250 in loan fees & lender recoverable expenses. The total 2nd mortgage payoff amount was $12,518.67. So there was plenty of equity in the deal covering our mortgage.

Here are the Deal Numbers: