Bank CALLS US to buy a one off note

[Lisa Edwards]

OK so, to qualify this, I've never bought a note before ....but I have paid attention and done some research.

I have a property where the home owner is about 5 months behind on his mortgage and the bank is ready to start foreclosure. Sad, sad story.... I had called the bank and spoke with i guess just the right person in a bank interview to find out exactly where the seller stood.

The numbers were just not working out where we can help the seller as his lovely granddaughter had totally trashed the house and never paid the mortgage as she said she would.

Fast forward...the bank called the other day and asked if we bought notes and if we would be interested in buying this note at 50c on the dollar. The answer was YES and POSSIBLY.

Here's where I need some help, never having bought a note before to get started with the bank. My intent would be to email the bank officer and ask:

• Is the 50c/$ on the unpaid balance of the house or something else?
• Do I make an offer via email?
• What is your process for us to get to review the soft collateral file?
• Will you accept escrow to get the soft collateral file? ( Or do you need payment in full?) Is this refundable is something in the file is not right?
• How long do we have to review the file?
For me, who do I get to review the file? A title company? An attorney? What are the things I need to look for in the file?Probably goes without saying, but I'll ask anyways...everything the bank sends me i should run by my attorney, right?

If the bank comes back with a whacked out price on the house, I can negotiate secondary to the condition of the house, right. Will the bank generally be open to negotiate.

This is a small community bank that prides themselves on never foreclosing on homeowners, I believe that's why they are eager to sell the note. And if it's 50c/$ on the UPB its a SWEET deal.

Any thoughts, advice, opinions appreciated. Thanks, Lisa

[Jay Hinrichs]

If the seller is signing over the deed. then you don't need to buy the note.. unless you have junior liens you want to wipe out with a foreclosure action.

you just take title sub too and negotiate a short pay with the bank