Asset Management Monthly Update, May 2022

Welcome to our Asset Management Monthly Update series, which we began in May 2020 to give Groundfloor investors a monthly snapshot of how our asset management team is managing our outstanding loan portfolio. This report provides details on loans repaid in the previous month, as well as insight into how Groundfloor acted to manage troubled loans. 

This latest installment looks at activity from May 2022. You may view activity from previous periods by clicking the links below.

April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021

September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021

February 2021

January 2021
December 2020
December 13-19, 2020
December 6-12, 2020
November 29 - December 5, 2020
November 22-28, 2020
November 15-21, 2020
November 8-14, 2020
November 1-7, 2020
October 25-31, 2020
October 18-24, 2020

October 11-17, 2020
October 4-10, 2020
September 27 - October 3, 2020
September 20-26, 2020
September 13-19, 2020
September 6-12, 2020

August 30 - September 5, 2020
August 23-29, 2020
August 16-22, 2020
August 9-15, 2020
August 2-8, 2020
July 26 - August 1, 2020
July 19-25, 2020
July 12-18, 2020
July 5-11, 2020
June 28 - July 4, 2020
June 21-27, 2020
June 14-20, 2020
June 7-13, 2020
May 31-June 6, 2020
May 24-30, 2020
May 17-23, 2020
May 10-16, 2020 

Principal and Interest Repaid Over The Past Months

First, let’s take a look at the total principal and interest repayments disbursed to investors over the past four months:

Total Principal and Interest Repaid Chart, May 2022

Total Principal and Interest Repaid Table, May 2022

Aggregated Performance Metrics

Next, let’s take a deeper dive into repayment activity over the past months to get a better picture of how our recently repaid loans have been performing. We examine the metrics of loans repaid within the last month, loans repaid since the start of Q2 2022, and loans repaid year-to-date in 2022. 

Aggregated Performance Metrics Table, May 2022
It's important to note that the above table shows the performance of loans that were repaid during the time periods noted, not the performance of loans originated during these timeframes.

Last Month’s Repayments - May 2022

This table presents loans that were repaid within the previous month, with details on the status, actual vs. expected term, actual vs. expected rate, and the exit valuation (sales price or appraised value at time of refinancing, if available):


Loan Repayments, May 2022_1Loan Repayments, May 2022_2Loan Repayments, May 2022_3Loan Repayments, May 2022_4Loan Repayments, May 2022_5
*NOTE: Actual rate is not inclusive of any promotions. Individual repayments are dependent on how long your principal is active in a given loan.

Key To Loan Status Column:
Current - loan remained current throughout the term and repaid with full principal (plus interest)
Extended - loan was past maturity and Groundfloor granted contract extension or forbearance agreement
Default - loan was past maturity and Groundfloor took some legal action (e.g., pursuing foreclosure or filing an insurance claim) to resolve the loan
REO - Groundfloor assumed title to the property (either through foreclosure or deed in lieu) and sold the property

Links to the loan detail pages for the above loans:

1498 Murphy Ave SW #1
1504 Murphy Ave SW #1
1122 Woodruff Rd
272 Kryder Ave
305 Riomar Dr
2815 Mitchell Dr
8314 Scarsdale Ct
3535 Plum St #1
703 East Main St
4532 Polaris St
5374 Brendlynn Dr (LRO #1, LRO #2)
126 Claire Dr SE
4334 Hercules Ave
1357 West 16th St
2167 Montrose Ave SW
150 River Ridge Rd
2755 West Surrey Dr
3005 Argonne Dr NW (LRO #1, LRO #2, LRO #3)
245 Chickadee Ln
505 Bernard Dr
604 Ideal Way (LRO #1, LRO #2, LRO #3, LRO #4, LRO #5)
1783 Helena St #1
2120 Lee Peters Rd
224 Ormond St SW, Unit B
2752 Lancaster Dr
2045 Wright Ave
2135 Rosewood Dr (LRO #1, LRO #2)
207 Culberson Ave
1861 Embassy Dr #1
1816 East 24th St #1
1700 Wilson Rd
1559 Southwest Alma St SW
5644 Morganford Rd
2165 Ontario St
3850 Evanston Rd
7868 Winkman Dr
116 66th St S
154 Clay St SE
3399 Lee St
1322 Courtland Dr #1
298 Roy St SW
3805 Mark Twain Cir
4174 Pebble Creek Dr
2193 Park Terr
1749 West Caribaea Trl SE
7799 Rock Rose Ln
5802 Hollyhock Rd
1951 Rayben Dr
10816 South Vernon Ave
2401 Greenglade Rd NE (LRO #1, LRO #2, LRO #3, LRO #4)
480 Forest Hills Dr (LRO #1, LRO #2)

7086 Alan Ave
4015 Leonard Cir E
220 Middle St, Unit 9
220 Middle St, Unit 10
220 Middle St, Unit 11
220 Middle St, Unit 12
3118 Commonwealth Ave
3035 Columbus Ave
3005 West 12th St
1417 29th St N
2733 Wedgefield Blvd
6428 Elwood Ave
1918 South Salford St
1943 West 24th St
601 Magnolia St
704 Anderson St
570 Thurmond St NW
103 West Church St
1200 Southern Ave
15103 Irving Ave
4734 Mercier St (LRO #1, LRO #2)
45 West 10th St
3702 Stanley St
2212 North Owasso Ave
1639 Parrish Pl
5910 Droad St

732 Superior St
533 James P Brawley Dr NW
29 Burke St SE
422 West Navarre St
6140 Riva Ridge Dr

Special Situations Repaid Last Month

Next, we provide a monthly overview of special situation loans we resolved in the prior month. 

Last month, a total of 82 loans were repaid. 30 of them were current, repaying on time and in full. 48 loans were granted an extension last month and were repaid after the stated maturity date. 4 were special situation loans, the details of which are below:

2815 Mitchell Dr - Repaid Via REO

The project began in January 2020 and the loan had an original maturity date in January 2021. The maturity date passed and the loan had not yet been repaid, so Groundfloor sent a Notice of Default to the borrower. The default period expired and in March 2021 Groundfloor began foreclosure proceedings. Foreclosure proceedings continued over the next several months. In August 2021, our attorney advised that a foreclosure sale date was scheduled for September. Groundfloor was the successful bidder at the foreclosure sale, and in October 2021 the property was secured and preservation work began. By December 2021, the property was prepped for sale and was actively listed on the market. After some initial offers, the property went under contract in February 2022. Due to delays with the buyer’s lender, the closing date was delayed until April 2022. The sale completed and the loan was repaid with a principal loss in May 2022.

The property was sold for $222,647.69. After adding the remaining escrow balance and subtracting foreclosure costs and legal fees, the net recovery on this property was $213,161.84, which represents a 96% recovery of principal. Impacted investors may view a more detailed breakdown of the recovery in our recent email communication. 

150 River Ridge Rd - Repaid Out Of Default

The project began in March 2021 and the loan had an original maturity date in January 2022. As the maturity date passed, Groundfloor began workout discussions in an attempt to avoid foreclosure. The borrower advised they were in the process of refinancing the loan, and Groundfloor prepared necessary documentation to grant an extension. In March 2022, the borrower advised that the property had been rented. In April 2022, Groundfloor began foreclosure proceedings. Separately, the borrower continued to work to refinance the loan. After initial delays with the appraisal, the refinance process was completed and the loan was repaid in full in May 2022. 

601 Magnolia St - Repaid Out Of Default

The project began in June 2021 and the loan had an original maturity date in December 2021. As the maturity date approached, the borrower advised that the property was currently under contract and requested an extension. Groundfloor executed a forbearance agreement, giving a new maturity date in February 2022. As the new maturity date approached, the borrower advised they were still working to repay the loan and were now pursuing a refinance. In April 2022, Groundfloor began foreclosure proceedings as the loan was still outstanding. After some initial difficulties in the refinance process, the refinance was completed and the loan was repaid in full in May 2022.

704 Anderson St - Repaid Out Of Default

The project began in May 2021 and the loan had an original maturity date in November 2021. As the maturity date passed with no recourse in place, Groundfloor sent a Notice of Default to the borrower. The borrower subsequently advised they were waiting on an appraisal before closing could occur, but anticipated closing by the end of December 2021. Groundfloor began workout discussions with the borrower and a forbearance agreement was granted, giving a new maturity date in February 2022. As the new maturity date arrived, the borrower advised they were still working to close. In April 2022, Groundfloor began foreclosure proceedings as the loan was still outstanding. After some initial difficulties in the refinance process, the refinance was completed and the loan was repaid in full in May 2022.

 

Special Situations Activity Last Month

Finally, our asset management team moved forward with the following special situation loans last month (see link to each individual loan page for detailed history of updates). As a reminder, all performing loans are monitored for repayment status starting at 120 days prior to maturity. 

Loan Activity:

We went into workout agreements on the following loans last month:

We proceeded with foreclosure actions on the following properties last month:

Real Estate Owned (REO) Activity:

We took possession of the following new properties last month:

We went under contract to sell the following properties last month:

We did not sell any real estate owned properties last month.

Joey Wilson

Vice President, Customer Success

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