An investment is “current” when expected payments due have been made and distributed to you and others invested in that same loan. PeerStreet services the loan and ensures you are receiving distributions on designated payment dates.
An investment is “paid off” when the loan has been repaid, the lien on the underlying collateral is released, and you’ve received your pro rata share of the proceeds.
An investment is a “short pay” when the loan has been paid off without the full principal being distributed to investors. In these cases, PeerStreet’s Asset Management team has pursued remedies in order to maximize the repayment amount, but was unable to recover all sums owed.
An investment is considered in “default” once we file the Notice of Default (NOD) or file a lawsuit (i.e., “complaint”), initiating the foreclosure process on a loan. At this point, PeerStreet continues to communicate with the lender and borrower while also moving forward with the foreclosure process. The foreclosure timelines and processes vary depending on state laws.
REO (Real Estate Owned)
An investment is “REO” (real estate owned) when PeerStreet or an affiliated entity takes ownership of the associated property. PeerStreet then works to sell the property as quickly as possible. Once a sale occurs, PeerStreet collects and distributes the net proceeds to you and others invested in that same loan.
Borrower has been given the right to defer interest payments on the loan until a later date. Interest continues to accrue and the deferred payments will be due to be paid at a later date. As the coronavirus pandemic spreads, PeerStreet is providing support to borrowers experiencing temporary hardship.