Method and apparatus for determining an optimal investment plan for distressed residential real estate loans
First Claim
1. A method for selecting a business plan for nonperforming real estate loans comprising the steps, performed by a processor, of:
- (a) receiving loan data including personal data relating to a borrower, financial information relating to the borrower'"'"'s financial position, an unpaid loan amount, and loan conditions including a loan term, a loan amount, and an interest rate, relating to a real estate;
(b) analyzing the borrower'"'"'s financial information to determine an ability-to-pay rate reflecting an interest rate indicating the borrower'"'"'s ability to repay a loan having the loan conditions;
(c) comparing the ability-to-pay rate and the interest rate of the loan conditions to determine whether the borrower can repay the unpaid loan amount;
(d) generating a repayment plan reflecting the ability to pay rate and the loan conditions if the comparison indicates that the borrower can repay the unpaid loan amount.
1 Assignment
0 Petitions
Accused Products
Abstract
Methods, system, and article of manufacture are provided for processing real estate loans based on loan data including personal data relating to a borrower, financial information relating to the borrower'"'"'s financial position, and loan conditions including a loan term and information on the corresponding real estate, related to a real estate loan. Such methods, system, and article of manufacture generate a comparison model including an ability-to-pay rate reflecting an interest rate on the loan reflecting the borrower'"'"'s ability to repay a loan having the loan conditions, a default rate reflecting an interest rate realizable if the loan is foreclosed and a new loan secured by the real estate originated, and a minimum rate reflecting an interest rate realizable if proceeds from a sale of the real estate before expiration of the loan term are determined to be acceptable and a new loan secured by the real estate originated. Using a relationship determined from the ability-to-pay rate, the default rate, and the minimum rate of the comparison model, as well as a predetermined current return rate, the methods, system, and article of manufacture select an acceptable return rate for the loan.
-
Citations
7 Claims
-
1. A method for selecting a business plan for nonperforming real estate loans comprising the steps, performed by a processor, of:
-
(a) receiving loan data including personal data relating to a borrower, financial information relating to the borrower'"'"'s financial position, an unpaid loan amount, and loan conditions including a loan term, a loan amount, and an interest rate, relating to a real estate; (b) analyzing the borrower'"'"'s financial information to determine an ability-to-pay rate reflecting an interest rate indicating the borrower'"'"'s ability to repay a loan having the loan conditions; (c) comparing the ability-to-pay rate and the interest rate of the loan conditions to determine whether the borrower can repay the unpaid loan amount; (d) generating a repayment plan reflecting the ability to pay rate and the loan conditions if the comparison indicates that the borrower can repay the unpaid loan amount. - View Dependent Claims (2)
-
-
3. An apparatus for selecting a business plan for nonperforming real estate loans comprising:
-
(a) means for receiving loan data including personal data relating to a borrower, financial information relating to the borrower'"'"'s financial position, an unpaid loan amount, and loan conditions including a loan term, a loan amount, and an interest rate, relating to a real estate; (b) means for analyzing the borrower'"'"'s financial information to determine an ability-to-pay rate reflecting an interest rate indicating the borrower'"'"'s ability to repay a loan having the loan conditions; (c) means for comparing the ability-to-pay rate and the interest rate of the loan conditions to determine whether the borrower can repay the unpaid loan amount; (d) means for generating a repayment plan reflecting the ability to pay rate and the loan conditions if the comparison indicates that the borrow can repay the unpaid loan amount. - View Dependent Claims (4)
-
-
5. A method for determining acceptable interest rates for real estate loans comprising the steps, performed by a processor, of:
-
(a) receiving loan data, including personal data relating to a borrower, financial information relating to the borrower'"'"'s financial position, and loan conditions including a loan term, information on the corresponding real estate, a loan amount, and a loan rate, related to a real estate loan; (b) analyzing the borrower'"'"'s financial information to determine an ability-to-pay rate reflecting an interest rate on the loan reflecting the borrower'"'"'s ability to repay a loan having the loan conditions; (c) determining from the loan data a default rate reflecting an interest rate realizable if the loan is foreclosed and a new loan secured by the real estate originated; (d) determining from the received loan data a minimum rate reflecting an interest rate realizable if proceeds from a sale of the real estate before expiration of the loan term are determined to be acceptable and a new loan secured by the real estate originated; (e) generating a comparison model from the borrower'"'"'s financial information, the comparison model including the ability-to-pay rate, the default rate, and the minimum rate; (f) analyzing the comparison model to determine a relationship among the ability-to-pay rate, the default rate, the minimum rate, and a predetermined current return rate; (g) extracting lender preferences from a constraints database; (h) selecting an acceptable return rate for the loan based on the relationship, the lender preferences, and the personal data; and (i) modifying the loan conditions to provide the acceptable return rate. - View Dependent Claims (6)
-
-
7. An apparatus for determining acceptable interest rates for real estate loans comprising:
-
(a) means for receiving loan data, including personal data relating to a borrower, financial information relating to the borrower'"'"'s financial position, and loan conditions including a loan term, information on the corresponding real estate, a loan amount, and a loan rate, related to a real estate loan; (b) means for analyzing the borrower'"'"'s financial information to determine an ability-to-pay rate reflecting an interest rate on the loan reflecting the borrower'"'"'s ability to repay a loan having the loan conditions; (c) means for determining from the loan data a default rate reflecting an interest rate realizable if the loan is foreclosed and a new loan secured by the real estate originated; (d) means for determining from the received loan data a minimum rate reflecting an interest rate realizable if proceeds from a sale of the real estate before expiration of the loan term are determined to be acceptable and a new loan secured by the real estate originated; (e) means for generating a comparison model from the borrower'"'"'s financial information, the comparison model including the ability-to-pay rate, the default rate, and the minimum rate; (f) means for analyzing the comparison model to determine a relationship among the ability-to-pay rate, the default rate, the minimum rate, and a predetermined current return rate; (g) means for extracting lender preferences from a constraints database; (h) means for selecting an acceptable return rate for the loan based on the relationship, the lender preferences, and the personal data; and (i) means for modifying the loan conditions to provide the acceptable return rate.
-
Specification