Look What Spring is popping up in NOTES.....

[Stacey Wall]

Just like the flowers, notes are popping up all over! We've been picking up some assets, since spring is here so, it seems like the assets are getting a little bit more prevalent, and we've done pretty well over the last week or so. In the last 10 days, we picked up six assets. I will give you a little heads up on a few of them, and we'll pick up the others in the next week or so.

The first asset we picked up is a single family home in Montgomery, Alabama. It's a cute little three bed room, one bath, about 1,100 square feet.It's a nice, quiet neighborhood.We picked that asset up for about $38,000.00. Everything seems to be in pretty good shape. There are no taxes due on the property. We ordered the O&E report which came back with a clean title, no liens, like I said, no current taxes. As we were going through the collateral file, we realized that, they've gone through about two or three different modifications over the last couple of years, with other servicers and owners.

At this point, we will offer one quick contact with the borrower, and then we may just have to move on with that and try to shoot for a deed in lieu or cash for keys. And then if not, then we will proceed with foreclosure. But, it's in a great little neighborhood, which I think will help us out a bit.Running through the numbers just a little bit, like I said, we picked it up for $38,000. It's got a BPO of $64,900, unpaid balance on this one move forward with foreclosure, it will cost us about $4000 or so plus some carrying costs for the year. It's fairly short time in Alabama to close on this so it looks like we could do a ROI on this one for about 36% when we're done. Again, nice little property. It's a red brick house in Montgomery, Alabama.

The 2nd property we picked up is in Newport Richey, Florida. Like the Montgomery property, it is a single family, three bedroom, one bath home. We picked this asset up for $36,000. As we performed our due diligence, we realized the owner is not in the country any longer. He's been kind of bopping back and forth between South America and here. The owner has gone through four other modifications, over the last two years, so with this one, we think we're just probably going to end up having to try to do a deed in lieu. His sons have been in and out of the house, leaving the house vacant at times and occupied at other times. On this asset, we will start foreclosure process right away, as we normally do anyway, just to get the attention of the owner. But, in this one, I think it will end up going pretty much straight to a foreclosure.

In doing so, there are some good dollars in this one. So, looking at the money, if we have to do a foreclosure, it will cost about $4000 plus carrying cost of about $1,500. The BPO on this one is $95,000. The unpaid balance is only about $58,000 but, there's quite a bit of arrearages that brings the total amount owed to around $85K, which is what we would be looking for if we were trying to sell it anyway.We will want to try to move it quickly at that point, so if we sell it for $85,000. We will have about a 49% ROI.

The local rent in the area is $1100 a month so, push comes to shove, we might even keep this one as a rental. It'd give us about $13,000 a year, 30% our way on first year just as a rental property. So, looking at it that way, this is should be a really good asset, for us. The O&E report came back, indicating there is about $1,300 in taxes. If we have to do the full foreclosure, and hold it for a little bit while we're doing that, the ROI in foreclosure, we're looking at almost 49%. So, this could be a really good asset. In addition, the prices in Florida are continuing to go up which is a plus.

Stacey Wall