Loan Acceleration Default Calculations Advice

[Shawn C.]

My company purchased a first lien home equity nonperforming note in Texas years back. It took us six months (should have only taken 30 days) to receive the paperwork from the financial institution we purchased the note from. Once we received everything, we tried to get a deed in lieu of foreclosure from the mortgagee without luck. Then we sought out legal counsel and were told the note was worthless. Fast forward seven years, we found out what we were told was incorrect and the attorney did not know what they were talking about.

We are now sending a letter of default and acceleration, but we need to figure out how much the payee owes including penalty and interest. Is there a program or spreadsheet out there I could use? We do not purchase a lot of NPN's, and this is currently the only one we have. So, we are not wanting to spend a lot of money of something sophisticated just something simple and quick to get the job done. We have still sent letters periodically and we are going to try to get a deed in lieu one more time before we start foreclosure proceedings, but I need to have these figures.

Any suggestions? Your assistance is greatly appreciated.

[Jay Hinrichs]

Originally posted by @Account Closed:

Originally posted by @Jay Hinrichs:

Originally posted by @Ronald Rohde:

Originally posted by @Wayne Brooks:

Yeah, no payments on a 19 year old loan....I’m afraid you’re about to find out why this loan has been sold so many times.

 I would not take that bet either!

I bought a property last year in WA  state and the lender failed to foreclose for 10 years.. and the lender just mailed the owner their deed I had never heard of that before I guess there is some statue of limitations as to when a mortgage or deed of trust needs to start an action once default has occurred.  I got fresh title insurance on it and then flipped it.. to a rehabber.. so I know it can happen I wonder if the laws in TExas are the same ?  also don't think this mortgagee is in risk of credit being blemished with a DIL  probably not reporting anymore. 

@Jay Hinrichs That intrigues me. Do you happen to know who the lender was? I'm thinking that perhaps the loan was sold and resold and resold again and somewhere along the line the paperwork got lost, or was declared invalid in court, so the bank couldn't prove they had the right to foreclose. The loan may have originated with Washington Mutual or Countrywide and been part of the MERS controversy.

Anyway, good job for spotting an opportunity.

YOu know I did not dive into it I just asked my Senior escrow officer at WFG if they would insure .. and I got a yes and went forward.. certainly could have been a mers .. but something tells me there might have been a statue of limitations.