SEA GIRT, N.J., Sept. 21, 2011 /PRNewswire/ -- First Equity Capital, LLC is raising additional capital to invest in non-performing mortgage pools in an effort to help curb delinquencies and foreclosures. First Equity Capital purchased their first pool of loans in December of 2009 and they have successfully purchased over $10mm of non-performing loans from large banks and private equity funds.
It is often difficult for large financial institutions to successfully deal with individual loans because they do not have the requisite knowledge of local real estate markets and foreclosure laws. First Equity Capital specializes in purchasing non performing mortgages specifically in New Jersey and aims to find sensible options for each homeowner. "Housing continues to be a huge drag on the overall economy and there is a need for local, niche players to take a very hands-on approach to each individual loan to find a solution," said John Child, Managing Partner.
Non-performing mortgage pools are currently trading at deep discounts due to the stressed financial system and severe capital constraints on Wall Street. First Equity Capital buys these mortgages, reduces principal balances to reflect current market values, and tries to create manageable monthly payments so borrowers can stay in their homes.
"Several of our borrowers have had previous servicers take months to approve a loan modification and when all is said and done, the monthly payment was higher than before," according to Child. "Our goal is to approve loan modifications in days, not months and come up with payments that actually make sense."
"Not every borrower is a modification candidate and in many instances borrowers are just looking to move on with their lives and start over," said Child. "Most banks make the short sale process impossible and refuse to offer a deed in lieu of foreclosure, which is when the borrower deeds the house back to the bank instead of going through the full foreclosure process. We can usually approve short sales and deeds in lieu within 24 hours."
"The strategy is a win-win proposition for all the parties involved," said Child. "Borrowers stay in their homes or move on with their lives, financial institutions rid themselves of non-performing assets and investors receive an attractive return on investment. There is a critical need for the private sector to step in and help stabilize the housing market."
To learn more about First Equity Capital, visit the fund's Web site at http:///www.firstequitycapital.com or call (732)-359-7800.
First Equity Capital, LLC is a New Jersey based firm established in 2008 in response to the distressed mortgage market specifically in New Jersey. The companies realized the investment potential and need for the private sector to fill the void created by the overwhelming number of delinquencies and foreclosures. The management team has over 40 years of combined experience in finance and real estate, and includes a licensed mortgage banker, a foreclosure attorney, an equity derivative sales trader, loan officers, realtors and title officers.
CONTACT: John Child
T: (732) 359-7800/ F: (732) 907-1913
SOURCE First Equity Capital, LLC