Loan Summary
Borrower sought a 1st TD rate-and-term business purpose refinance on a non-owner occupied SFR investment property in the highly desirable Mesa Verde tract of Costa Mesa, Orange County, CA. Loan proceeds will pay off existing 1st mortgage lien currently in default and has a notice of default filed. The borrower, a registered nurse at Hoag Hospital in Newport Beach, fell into default after being diagnosed with cancer shortly after acquiring the property. Major surgery and chemotherapy resulted in temporary income loss and delinquent payments. The default was due solely to medical hardship, not financial mismanagement. The borrower returned to work and has been cancer-free since September 2025. Borrower has several exit strategies: borrower is receiving inheritance and plans to pay off this loan through inheritance, or refinance or sell.
Property Description
The subject is a single-story ranch-style home built in 1963, offering approximately 1,835 square feet on a 0.24-acre lot with four bedrooms, two bathrooms, and an attached two-car garage. The property includes a fireplace and a private backyard with pool and spa, located on a well-maintained cul-de-sac within Mesa Verde. The neighborhood is one of Costa Mesa’s premier communities, near Mesa Verde Country Club, golf, parks, schools, shopping, and major transportation routes. Market conditions are stable with low inventory and approximately 75% owner occupancy. Recent comparable sales range from $2.0M to $2.25M. A recent BPO valued property at $2,000,000. Market rent is approximately $6,500 per month, property is partially rented for $3,500 now. Borrower intends to increase rental income to market level with additional tenant. Landscaper is reseeding grass in front-yard, reason for temporary tarp on front-yard grass.
The value is supported by a recent interior BPO completed on 2/17/2026 by a local Mesa Verde agent (Berkshire Hathaway). The estimated as-is value is $2,000,000 .This is based on recent closed sales within 0.10–0.20 miles ranging from $2.0M to $2.25M, with an average of $2,144,667 , along with low inventory in Mesa Verde at the time of the report. Zillow and Redfin use automated models that don’t account for interior inspections, micro-location, or real-time MLS comparables. This valuation reflects an in-person review and current market data.
What We Like About This Trust Deed:
- Investment SFR in desirable Costa Mesa, Orange County
- 1st TD @ 12.00% interest-only yield / 645 FICO borrower
- Conservative 60.75% LTV (56.73% Net LTV)
- 6 months prepaid interest
- 6 months guaranteed interest
