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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 26, 1997.
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NovaStar Home Equity Loan Trust Series 1997-2
(Issuer in respect of the NovaStar Home Equity Loan Asset-
Backed Bonds Series 1997-2)
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(Exact name of registrant as specified in its charter)
Delaware 333-24327 Applied for
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
c/o First Union National Bank,
230 S. Tryon Street, 9th Floor, Charlotte, NC 28288-1179
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (704) 383-9568
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(Former name or former address, if changed since last report.)
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Item 5. See the monthly statement to Bondholders attached as Exhibit 20.1 hereto
reflecting the required information for the December 1997 payment to the
NovaStar Home Equity Loan Asset-Backed Bonds Series 1997-2.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Item 601 (a) of Regulation.
S-K Exhibit Number.
20.1 Monthly statement to holders of NovaStar Home Equity Loan Asset-Backed
Bonds Series 1997-2 relating to the December 26, 1997 Payment Date.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on behalf of NovaStar
Home Equity Loan Trust Series 1997-2 by the undersigned thereunto duly
authorized.
Dated: January 8, 1998 BY: First Union National Bank, as Indenture
Trustee and on behalf of NovaStar Home
Equity Loan Trust Series 1997-2
BY: /s/ Robert Ashbaugh
Vice President
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EXHIBIT INDEX
20.1 Monthly statement to holders of NovaStar Home Equity Loan Asset-Backed
Bonds Series 1997-2 relating to the December 26, 1997 Payment Date.
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EXHIBIT 20.1
NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED NOTES
SERIES 1997-2
STATEMENT TO BONDHOLDER
<TABLE>
<CAPTION>
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DISTRIBUTIONS IN DOLLARS
PRIOR CUMULATIVE CURRENT
ORIGINAL PRINCIPAL REALIZED REALIZED DEFERRED PRINCIPAL
CLASS FACE VALUE BALANCE INTEREST PRINCIPAL TOTAL LOSSES LOSSES INTEREST BALANCE
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BONDS 212,113,000.00 212,113,000.00 515,552.43 1,737,315.48 2,252,867.91 0.00 0.00 0.00 210,375,684.52
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TOTALS 212,113,000.00 212,113,000.00 515,552.43 1,737,315.48 2,252,867.91 0.00 0.00 0.00 210,375,684.52
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</TABLE>
<TABLE>
<S> <C>
GUARANTEED INTEREST PAYMENT $ 497,112.18
BOND INTEREST RATE 6.25000%
MAXIMUM BOND INTEREST RATE 14.51%
</TABLE>
<TABLE>
<CAPTION>
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FACTOR INFORMATION PER $1000 OF ORIGINAL FACE PASS-THROUGH
PRIOR CURRENT RATES
PRINCIPAL PRINCIPAL
CLASS CUSIP BALANCE INTEREST PRINCIPAL TOTAL BALANCE CURRENT NEXT
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
BONDS 66987WAA5 1,000.00 2.430556 8.190519 10.621074 991.81 6.250000% 0.000000%
</TABLE>
<TABLE>
<S> <C>
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SELLER: NOVASTAR FINANCIAL, INC.
SERVICER: NOVASTAR MORTGAGE CORPORATION
RECORD DATE: December 11, 1997
DISTRIBUTION DATE: December 26, 1997
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</TABLE>
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NOVASTAR HOME EQUITY LOAN TRUST
NOVASTAR HOME EQUITY LOAN ASSET-BACKED NOTES
SERIES 1997-2
STATEMENT TO BONDHOLDER
<TABLE>
<S> <C>
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Distribution Date: December 26, 1997
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AGGREGATE COLLECTIONS FROM THE MORTGAGE LOANS
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Total Collection on Pool 3,198,943.79
Total Servicer Advances 0.00
Total Compensating Interest 0.00
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AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT 0.00
AGGREGATE UNPAID AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT 0.00
CURRENT PERIOD INSURED PAYMENTS PAID BY INSURER 0.00
AGGREGATE UNREIMBURSED INSURED AMOUNTS PAYABLE TO INSURER 0.00
AGGREGATE BEGINNING PRINCIPAL BALANCE OF MORTGAGE LOANS 222,574,961.00
AGGREGATE ENDING PRINCIPAL BALANCE OF MORTGAGE LOANS 220,837,645.52
REQUIRED SUBORDINATION AMOUNT 10,461,961.00
CURRENT SUBORDINATION AMOUNT 10,461,961.00
SUBORDINATION INCREASE AMOUNT 0.00
SUBORDINATION REDUCTION AMOUNT 0.00
NET MONTHLY EXCESS CASHFLOW 959,563.84
UNPAID ACCRUED INTEREST 0.00
CURRENT REALIZED LOSS ON MORTGAGE LOANS 0.00
AGGREGATE REALIZED LOSS ON MORTGAGE LOANS 0.00
WEIGHTED AVERAGE NET MORTGAGE RATE 7.36455160%
</TABLE>
<TABLE>
<CAPTION>
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DELINQUENCY DELINQUENT DELINQUENT DELINQUENT LOANS IN REO
INFORMATION 30-59 DAYS 60-89 DAYS 90 + DAYS FORECLOSURE PROPERTY
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<S> <C> <C> <C> <C> <C>
PRINCIPAL BALANCE 2,011,579.54 389,633.38 66,774.16 0.00 0.00
NUMBER OF LOANS 9 3 0 0 0
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</TABLE>
<TABLE>
<CAPTION>
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REPURCHASE Current Cumulative
INFORMATION Period History
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<S> <C> <C>
PRINCIPAL BALANCE 0.00 0.00
NUMBER OF LOANS 0 0
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</TABLE>
<TABLE>
<S> <C>
CUMULATIVE LOSS PERCENTAGE 0.00000%
DELINQUENCY PERCENTAGE 0.03024%
ROLLING DELINQUENCY PERCENTAGE 1.44024%
PREPAYMENT INTEREST SHORTFALLS 0.00
RELIEF ACT SHORTFALLS 0.00
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</TABLE>
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