What are Defaults?

Due to the magnitude of business handled by YMC, defaults are simply a fact of life. This occurs when an owner of land defaults in making the required monthly payments, in which case the defaulting party loses his or her ownership and the land is then resold to a new buyer. Interestingly enough, during the 15 years that YMC has serviced accounts for its client companies, the reason for a default is hardly ever due to the owner not liking, or not wanting to keep, the land. Instead common reasons for defaults include job loss, divorce, the breakup of a partnership, bankruptcy or death.

In the event of a default, it is Yellowstone Mortgage Company’s policy to resell the land for no money down, a 100 dollar processing fee and to structure a highly beneficial, personalized payment schedule for the new buyer! In many ways this provides the new buyer an opportunity to customize the note and payment schedule to fit with his or her own financial circumstances. Additionally there are no credit checks or qualifying of any nature. Because there are no credit checks, however, the first month’s payment is usually required at the time of the sale (with the next monthly payment not due until 60-days later).

The old saying that, “One person’s loss is another person’s gain” can often describe circumstances surrounding a defaulted purchase. However, Yellowstone Mortgage Company offers no representations as to current or future property values or uses and relies on the wording of the documentation (provided by its clients) as providing full and complete disclosures. YMC is not a sales organization and handles default transactions solely as an accommodation for its clients. Finally, in some instances, there might be cross ownership involving the principals in the entity owning the defaulted parcel and Yellowstone Mortgage Company.