2022 Outlook for Coastline Capital Funds
Last week, I wrote a blog post about how our non performing note funds did in 2021.
This week, I’ll talk about how we expect our Funds to perform in 2022. Keep in mind, these are our best estimates of what will happen and we wanted to give you the best possible view forward. Things might not turn out exactly how we expect them to and that’s just the nature of the business.
Let’s start with our oldest running first.
(You can view loan level details for the loans of the individual Funds here.)
Fund III Forecast:
2 remaining assets:
· 1 REO is in contract to a retail buyer and scheduled to close in mid-February.
· 1 REO s still awaiting title clearance before listing for sale. We won a major victory in court on Wednesday as the court granted our Motion to Expunge the Lis Pendens. We could list the property for sale as early as 30 days from now but the ex-borrower can still appeal. However, her ability to continue litigating & tying this up is running out.
We are hoping to have this Fund wrapped up by April or May.
Fund IV Forecast:
1 remaining asset.:
We are in the process of re-starting the foreclosure and this state has a very quick timeline. The borrower has two recent bankruptcies and we don’t believe that if she files a 3rd bankruptcy that it would delay us by much.
We believe that we’ll be able to liquidate this final asset and complete the Fund by July.
Fund V Forecast:
2 remaining assets:
• 2 REOs are in contract and scheduled to close by the end of January.
Fund III and Fund IV were significantly impacted by COVID related moratoria and delayed court operations. Fund V started in the middle of COVID and we were able to adapt our purchases with this in mind.
As a result, it appears that Fund V will liquidate its assets and close in February.
Fund 6 Forecast:
9 assets remaining:
• 1 REO is listed for sale.
• 1 REO is getting ready to be listed for sale.
• 2 REOs are undergoing rehab.
• 2 NPNs are pre-judgment.
• 2 NPNs have upcoming foreclosure sale dates.
• 1 NPN has a borrower in Chapter 13 bankruptcy.
Four assets are REO, which means that the timelines to liquidation are more certain. With the five non-performing notes, what the borrowers do is outside of our control and their actions can significantly affect our timelines.
With that in mind, we still believe that this Fund will liquidate its assets by the end of 2022.
Fund 7 Forecast:
We’re in the process of acquiring one or two more non performing notes and inboarding 6 assets.
4 of those 6 assets should liquidate by the end of 2022. The remaining two might take until mid 2023 to liquidate.
Fund 8 Forecast:
Future Funds? We anticipate opening up Fund 8 in March to May, 2022.