Anyone purchase a Note from Nationstar??

[Tom Meade]

Hello all. I'm not a residential NPN investor, but trying to help a buddy out. My buddy is a developer, and a next door neighbor of one of his buildings has not made a mortgage payment in over a year, and Bank of America recently sold the note and/or transferred servicing to Nationstar. Does anyone have a contact or any experience with purchasing NPN from Nationstar?

I can't imagine they do one-off note sales, but could potentially consider a DPO? I advised the developer that the cleanest way would be to purchase the note and get the neighbor to sign a deed-in-lieu. However the neighbor is at least somewhat communicative with the developer, so there may be a way to negotiate the DPO on his behalf and still come away with the property.

Any leads on a contact or experience with Nationstar would be appreciated. Thanks!

[Dion DePaoli]

Nationstar is likely the special servicer not the mortgagee. You can look up the mortgagee through public records. That said, you have Nationstar and can work with them in a standard manner to see what you can get done. The advice you gave may need some correcting.

To some degree it seems like the idea of a DPO, which I assume you mean Discounted Pay Off, is being looked to as some alternative. Discounting the total amount due under the note is simply a "Short". If the property needs to convey to a new owner (Developer), then it is a Short Sale. If the property is staying with the current owner, then it is simply a Payoff of the old debt, which is simply Short Pay or if a new mortgage is formed a Short Refinance.

So the idea of the 'cleanest' disposition here is a short sale not purchasing the note to obtain a lieu deed. Pretty straight forward. Purchasing a note does not guarantee the property will be title to the new mortgagee, even if the plan is to pursue a lieu deed. A lieu deed is far from the cleanest nor is it remotely the safest or wisest thing to pursue if the loan has no equity. Take a look at the idea of undue influence. It also ignores the possibility of other creditors charging the transaction as fraud or even a BK trustee conducting a look back and reversing the DIL all together.

There is an idea of what a DIL is in the general public for both investor and non-investor, the idea is understood basically and generally. A DIL is when a property owner gives title to the property as satisfaction for the debt lien against the property. However, usually the knowledge of most folks ends right there and there is a bit more to the whole picture than it being just that simple frankly. DIL's can quickly become your worst nightmare if left to the layman and their limited scope of understanding of the rest of the picture. Pre-event actions matter. Equity matters. Communications matter. DIL is not as DYI as many think.

Plainly stated, go back and advise your Developer to make a short sale offer and forget about the note purchase. I don't see why you need the note transaction here frankly.

@David L. , I admit upfront, I do not fully understand your intentions based on your post but I can only assume that somehow the post you have seems to suggest that you would want to purchase your own loan. Sure, so would the rest of the world. I have good news for that idea, you can also simply send the entire payoff to your current Mortgage Servicer and Viola, you paid for your own loan. Now, I am pretty sure the rest of the idea is that some how you would need a discounted purchase price for your loan. Not the first and not the last to desire such things. If you have enough money to buy your loan, simply pay it off. The chances of you being able to purchase your own primary residence loan is very, very low, the chances of you purchasing your loan with a substantial discount is up there with sitting down and having tea with Ben Franklin and Elvis at the same time next Tuesday...zero.