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Updated almost 8 years ago,

User Stats

65
Posts
36
Votes
Scott Hawley
  • Investor
  • Bellevue, WA
36
Votes |
65
Posts

Why would a new performing note sell for 87.5% UPB?

Scott Hawley
  • Investor
  • Bellevue, WA
Posted

I've been reading a lot about notes but am still very new. I'm not sure if this is the going rate, but suspect it isn't. Why would some sell a brand new note for 87.5% UPB? It is like they just made the note and are taking a loss on it.

General Note Information

Lien Position1st Mortgage/Deed of Trust

Note Status Performing

Note Type Conventional

# of Payments Last 12 Months0

Paid To 01/01/2017

Loan Maturity 01/01/2046

Property Type Single Family Res

Original Balance $64,125.00

Principal Balance $64,125.00

Est. Market Value $81,590.00

Payment Amount $735.67

Note Rate 9.750%

Sold Rate 9.750%

Seller Comments: Newly originated note with full RMLO package from Texas Pride Lending included. Documents prepared by MLH Legal in Dallas, TX. This is a well written and well qualified note. Borrower's debt to income ration is UNDER 30%. Solid borrower, relocated from Ft Worth to the Tyler area at the request of his employer. Property is on a half acre located in the very desirable Whitehouse Schools District.

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