After the COVID-19 pandemic’s onset in Q2 2020 triggered upheaval and uncertainty in financial and real estate markets, we wanted to provide Groundfloor investors with more insight into our asset management team’s activities.
On the heels of our extensive stress test analysis, which looked at the potential effects a coronavirus-related recession could have on our investors’ portfolios, starting in May 2020 our team began publishing weekly updates on loan repayments and asset management activities to provide a transparent look at how our loans were actually performing in real time.
As 2021 continues, we are pleased to continue providing transparent updates of our asset management team’s activities on a monthly basis. This latest installment looks at activity from November 2021.
You may view activity from previous periods by clicking the links below.
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:
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 Q4 2021, and loans repaid year-to-date in 2021.
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 - November 2021
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):
Please note that we have recently updated the terminology we use to categorize loan performance. Going forward, we are reserving the label “default” for those loans past maturity in which some legal action is being taken. All loans that reach maturity but are otherwise in good standing or have a contract extension in place will now be labeled “extended.” You can read more about this terminology change in our Portfolio Analysis: Q3 2021.
*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:
1514 West 22nd St
4455 Huntington Forest Blvd
618 Dashland Dr
624 Dashland Dr
2618 North Dayton St
9976 Jeanette Rd
2213 Miller Ave
2523 Hiland St
1848 Old Summerville Rd NW
1612 36th St
10141 Summit Dr
1094 Iranistan Ave
744 Cone Rd
2370 Saint James Dr SE
1014 North Harding Ave
1070 Lucile Ave SW
2302 West 17th St
123 Bufflehead Dr
231 Oleander St
169 Spearman Ln
700 Revolution St
1836 Scott St
3946 Aldrich Ave N
827 Elbert St SW
915 Sailfish Dr E
6230 Feldwood Rd
2062 Detroit Ave NW
929 East Ramseur St
16402 Bohemian Hall Rd
1446 Southwest 25th Pl
426 Walnut St
1258 Campbellton Rd SW
3036 College Ave
846 North Clayton St
6912 Sandalwood Dr
645 Woods Dr NW
550 Meadowvale Dr
712 Glenwood Ave SE Unit B (LRO #1, LRO #2, LRO #3)
620 Dashland Dr
622 Dashland Dr
3153 Whitethorn Rd
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 42 loans were repaid. 21 of them were current, repaying on time and in full. 21 were special situation loans, the details of which are below.
2017 Sandlake Dr SW - Repaid Via Extension
The project began in February 2021 and the loan had an original maturity date in July 2021. As the maturity date passed with no repayment from the borrower, in August 2021 Groundfloor sent a Notice of Default to the borrower. The borrower subsequently informed Groundfloor that the property was under contract with an expected closing date in September 2021. As such, Groundfloor granted an extension to give the sale time to go through. The sale continued to process through October 2021, and the loan was repaid in November 2021.
2618 North Dayton St - Repaid Via Extension
The project began in March 2021 and the loan had an original maturity date in September 2021. In April and May 2021, the borrower advised that they were in the process of receiving permit approval. In June 2021, the borrower advised that permitting was complete and renovations had begun. As the maturity date passed with no repayment, Groundfloor sent a Notice of Default to the borrower. In October 2021, Groundfloor reached a workout agreement with the borrower, giving a new maturity date in December 2021. The borrower subsequently advised that the property was under contract, and in November 2021 the loan was repaid.
2523 Hiland St - Repaid Via Extension
The project began in May 2021 and the loan had an original maturity date in October 2021. Groundfloor had received a payoff request good through October 2021; however, the maturity date arrived with no repayment, so Groundfloor sent a Notice of Default to the borrower. Repayment needed a bit more time to complete, and in November 2021 the loan was repaid.
1014 North Harding Ave - Repaid Via Extension
The project began in March 2021 and the loan had an original maturity date in July 2021. As the maturity date approached, Groundfloor granted a 30-day forbearance to the borrower, giving a new maturity date in August 2021. The borrower subsequently advised that the property was under contract, with an expected closing date in September 2021. As the new maturity date approached, the borrower advised that there were delays in the closing process. Groundfloor granted an additional forbearance until the end of November to allow the closing process to complete, and the loan was repaid in November 2021.
1070 Lucile Ave - Repaid Via Extension
The project began in July 2020 and the loan had an original maturity date in July 2021. As the maturity date approached, the borrower advised that they were experiencing extreme delays with permitting due to city backlogs. Groundfloor granted a 120-day forbearance to the borrower, giving a new maturity date in November 2021. The loan was subsequently repaid in November 2021.
123 Bufflehead Dr - Repaid Via Extension
The project began in March 2020 and the loan had an original maturity date in December 2020. The borrower experienced significant delays in construction materials due to COVID-19. As the maturity date approached, Groundfloor reached a workout agreement with the borrower, giving a new maturity date in April 2021. In February 2021, the borrower advised that final inspections had been scheduled and the property was actively listed on the market. The property went under contract with an expected closing date at the end of March 2021/beginning of April 2021. However, the borrower subsequently advised that they had run into issues with the final phase of the project and the installation of the septic tank, and requested an additional forbearance agreement to give them time to address the issue. In June 2021, the borrower advised that they had obtained septic tank permits and were progressing with addressing the septic tank issues, and the property remained under contract. Groundfloor subsequently granted an additional forbearance due to the septic tank delays, giving a new maturity date in January 2022. The loan was repaid in November 2021.
231 Oleander St - Repaid Via REO
The project began in March 2020 and the loan had an original maturity date in August 2020. The property was a duplex and the borrower’s original plan was to renovate the duplex. While progressing on the project, the borrower received a code violation, which resulted in the municipality taking away the zoning approval for a duplex and the borrower halting work on the project. As such, Groundfloor provided loan leniency in the form of an extension, giving a new maturity date in November 2020. However, the loan was still not repaid and in December 2020 Groundfloor placed the loan in default. In March 2021, Groundfloor obtained the property via a Deed in Lieu agreement with the borrower, and a property assessment was scheduled to determine what work needed to be done to prepare the property for sale. Groundfloor received multiple purchase agreements, but none closed. Because the property had been vacant for a long period of time, completing development required additional capital - especially since due to the zoning issues, the property needed to be renovated and sold as a single-family property. Groundfloor thus listed the property as-is in an effort to recover investors’ principal. The loan was finally repaid (principal only) in November 2021. Impacted investors can view a more detailed breakdown of their repayment in our recent email communication.
169 Spearman Ln - Repaid Via Extension
The project began in November 2020 and the loan had an original maturity date in November 2021. As the maturity date approached, Groundfloor provided a forbearance agreement to give the borrower time to complete repayment. The loan was subsequently repaid in November 2021.
827 Elbert St SW - Repaid Via Extension
The project began in October 2020 and the loan had an original maturity date in November 2021. In October 2021, the borrower advised that they were in the process of refinancing the Groundfloor loan, but were experiencing delays. The borrower subsequently advised that a closing date had been scheduled for November 2021. The refinance process completed and the loan was repaid in November 2021.
915 Sailfish Dr E - Repaid Via Extension
The project began in October 2020 and the loan had an original maturity date in July 2021. In June 2021, the borrower advised that renovations were complete and the property was actively listed on the market. However, the maturity date passed with no repayment, so in August 2021 Groundfloor sent a Notice of Default to the borrower. The borrower subsequently advised that the contract had fallen through. Groundfloor undertook workout discussions with the borrower in an effort to avoid foreclosure, and provided an extension. The loan was repaid in November 2021.
6230 Feldwood Rd - Repaid Out Of Default
The project began in February 2020 and the loan had an original maturity date in February 2021. In April 2020, the borrower advised that they were experiencing delays in the permitting process due to COVID-19. Work continued on the project through the rest of the year, but the project continued to experience delays due to COVID-19. In addition, as work continued, major structural issues were discovered that required additional time to be addressed. In February 2021, a stop work order was issued due to permitting issues, as the permits were still in progress. As such, Groundfloor reached a workout agreement with the borrower, giving a new maturity date in June 2021. The new maturity date passed with no repayment, with the borrower advising that permitting remained an ongoing issue. Groundfloor continued communicating with the borrower as renovations continued through July and August, but ultimately Groundfloor elected to commence foreclosure proceedings in September 2021. Foreclosure proceedings continued through October 2021. However, before foreclosure could be completed, the loan was repaid in November 2021.
2062 Detroit Ave NW - Repaid Via REO
The project began in December 2019 and the loan had an original maturity date in February 2021. In August 2020, the borrower advised that renovations were progressing ahead of schedule and the project was nearing completion. However, the maturity date approached with no repayment from the borrower, so in February 2021 Groundfloor issued a Notice of Default. In March 2021, the borrower advised that they intended to pay off the loan by the end of April. The borrower subsequently advised that the property was under contract with an expected closing date in June 2021. However, the contract fell through, and the borrower subsequently advised that they were pursuing a refinance, with an expected repayment in August 2021. After multiple calls and emails with the borrower discussing the project, Groundfloor elected to commence foreclosure proceedings on the property in September 2021. A foreclosure date in November 2021 was scheduled. The property was sold to a third party and the loan was subsequently repaid in November 2021.
929 East Ramseur St - Repaid Via REO
The project began in December 2018 and the loan had an original maturity date in December 2019. In December 2019, Groundfloor provided loan leniency in the form of a 90-day extension and a new maturity date was set in March 2020. In February 2020, the borrower advised that the property was actively listed on the market. However, the maturity date passed with no repayment, so in March 2020 Groundfloor engaged legal counsel to proceed with foreclosure. The foreclosure process continued through the next few months, and a foreclosure sale date was set for August 2020. However, in September 2020, our counsel advised that the county courthouse had closed due to an outbreak of COVID-19, and a new sale date in September had been set. On the scheduled date of sale, the borrower filed for bankruptcy, necessitating Groundfloor to engage our bankruptcy attorney. Bankruptcy proceedings remained ongoing through the end of 2020. In February 2021, our attorney advised that a foreclosure sale date was set for March 2021. Groundfloor was the successful bidder at the foreclosure sale. Foreclosure proceedings continued throughout the next few months as Groundfloor waited for the Upset Bid period to expire as per state law. Additionally, as the property was occupied at the time of foreclosure, Groundfloor’s legal team had to pursue legal remedies to order the tenant to vacate. In August 2021, Groundfloor received notice that the property had been secured and lockout was complete. The property was actively listed on the market in September 2021, and in October 2021 the property went under contract, with an expected closing date in November 2021. However, shortly thereafter, Groundfloor received notice that the property had been broken into and all appliances and mechanicals were stolen. In November 2021, Groundfloor accepted an offer to repay the loan with a full principal recovery.
1446 Southwest 25th Pl - Repaid Via Extension
The project began in June 2021 and the loan had an original maturity date in November 2021. The project was completed and staging for the market was underway as the maturity date arrived. The borrower needed additional time to complete the staging, and the loan was subsequently repaid in November 2021.
426 Walnut St - Repaid Via Extension
The project began in May 2021 and the loan had an original maturity date in November 2021. As the maturity date approached, the borrower advised that the property was actively listed on the market and that renovations had been completed. When the maturity date passed with no repayment, Groundfloor sent a Notice of Default to the borrower. The property subsequently went under contract and the loan was repaid in November 2021.
3036 College Ave - Repaid Via Extension
The project began in October 2020 and the loan had an original maturity date in April 2021. The maturity date arrived with no repayment, so Groundfloor sent a Notice of Default to the borrower. The borrower advised that the property was nearing completion and was scheduled to be listed on the market. However, the property had not been sold by September 2021, so Groundfloor engaged in workout discussions with the borrower in an attempt to avoid foreclosure. In November 2021, the borrower requested a payoff, and the loan was repaid shortly after.
846 North Clayton St - Repaid Via Extension
The project began in October 2020 and the loan had an original maturity date in October 2021. In July 2021, the borrower advised that the property was actively listed and had a pending sale. The property went under contract with an expected closing date in September 2021. In October 2021, the borrower advised that they were negotiating an offer. The loan was repaid in November 2021.
712 Glenwood Ave SE Unit B - Repaid Via Extension
The project began in August 2020 and the loan had an original maturity date in August 2021. The maturity date passed with no repayment, so Groundfloor sent a Notice of Default to the borrower. The borrower subsequently advised that the property was under contract with an expected closing date in November 2021. The loan was subsequently repaid.
620 Dashland Dr - Repaid Via Extension
The project began in May 2021 and the loan had an original maturity date in November 2021. In November 2021, the borrower advised that the property was under contract. The property was sold and the loan was repaid in November 2021.
622 Dashland Dr - Repaid Via Extension
The project began in May 2021 and the loan had an original maturity date in November 2021. In October 2021, the borrower advised that the property was under contract. The closing was delayed slightly due to corrections needed on some paperwork, and the loan was subsequently repaid in November 2021.
3153 Whitethorn Dr - Repaid Via Extension
The project began in March 2021 and the loan had an original maturity date in August 2021. The maturity date passed with no repayment, so Groundfloor sent a Notice of Default to the borrower. In September 2021, the borrower advised that renovations were nearing completion and the property was scheduled to be listed on the market. In October 2021, Groundfloor reached a workout agreement with the borrower, giving a new maturity date in November 2021. The loan was subsequently repaid in November 2021.
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:
- 191 Katherine Dr
- 154 Clay St SE
- 1136 Oak Knoll Ter SE
- 3130 Lavista Rd
- 785 Thurmond St NW
- 3812 Donaldson Dr
- 782 Dixie Ave NE
- 758 Charlotte Pl NW
- 2557 Glenwood Ave SE
- 1504 Beecher St SW
- 768 East 3rd St
- 127 Hunts Mill Cir
- 129 Hunts Mill Cir
- 1999 Willa Way
- 2000 Willa Dr
- 900 Center Hill Ave NW
- 9343 Corbin Rd
- 5201 Southwest 3rd Ct
- 533 James P Brawley Dr NW
- 1375 Alverado Way
We proceeded with foreclosure actions on the following properties last month:
- 595 Twilley Rd NW
- 879 Sims St SW
- 5111 9th Ave N
- 1795-1797 West Grand Blvd
- 3855 Eloise St
- 3450 Trout River Blvd
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 sold the following real estate owned properties last month: