Advice on Calculations to Foreclose Non-Performing Note

[Pat P.]

I want to foreclose on an old note. Willing to pay $100 for best answer to all questions asked below to show appreciation for your time.  Please DO NOT raise statute of limitations issue.

Questions are bolded below: basically requesting calculations for payoff, NOD reinstatement amount and projected Notice of Sale amount or formula so I can calculate when I know the date of sale - in English please, not algebra equation please!) I can fax you the note and my amortization schedule. Here goes:

Terms: Loan of $30,000 made September 30, 1993 at 8%.
Installments starting November 4, 1993 until October 4, 1998,
Entire unpaid principal balance and unpaid accrued interest become due in full.
Note shall continue to bear interest after breach.
There is a late charge of 6% of monthly installment if made 10 or more days late.
Should default be made in payment of principal or interest when due the whole sum
shall at option of holder be due. Interest after default shall be at same rate.

Payments were made as follows:
12/14/93 $250.94
01/09/94 $250.94
02/07/94 $250.94
03/22/94 $250.94
04/24/94 $250.94
05/26/94 $250.94

Advances made:
1- 07/14/94 $350 Notice of default
2- 02/27/17 $50recording fees
3- 4/22/17$15notary fee sub of trustee

Late fees
$858.42 (57 payments x $15.06) from 7/4/94 to 10/4/98 maturity date

Trustee Fees: $1,574.75

A notice of balloon payment was served on 3/31/17

Questions:
1) Can this loan be foreclosed on just the interest-only payments
from June 1994 to present to avoid waiting for 90-day balloon notice to mature?

2) If “yes” to #1,what is correct amount to put on NOD as reinstatement amount?
A trustee came up with this: $69,008.50
This was calculated as follows:
275 payments x $250.94= $69,008.50 The payments starting 6/4/94 up to4/10/17
Please provide a per diem if relevant.

3) What are correct amounts for a Payoff Statement?
Trustee also issued a payoff as follows:
$55,160 accrued interest from 5/4/94 to 4/28/17
$30,000 principal balance
They then added advances plus trustee fees (shown above) for a total of $88,008.17
I came up with $86,268.29, see amortization schedule.

Please provide a per diem if relevant.

4) How do you calculate the figure for the Notice of Sale? (even if sale date not known at
this time).

5) If foreclosing on interest-only payments is not advisable, please provide same info
for standard foreclosure on entire loan/principal/interest for 1) NOD reinstatement, 2) for a Payoff Statement and 2) formula to calculate demand on Notice of Sale.

6) If foreclosing on interest-only payments is not advisable, please provide same info
for standard foreclosure on entire loan/principal/interest for NOD reinstatement, for a Payoff Statement and formula for Notice of Sale.

A HOA has recently foreclosed and hold title through sheriff sale. They have offered their deed
but what are the liabilities of accepting it in lieu of foreclosure? HOA fees? Hard to insure title insurance? There are no other liens on property but current HOA liens from time they foreclosedu
to present.

Can you help?

[Dion DePaoli]

@Pat P.

Keep the money or send it to BP.  I am fine.  I will help you.

1.  That's not how foreclosure really works.  The entire note is accelerated and called due.  You don't simply pick and choose what you will or will not foreclose on.  That said the calculations need to be correct.

2. If we assume the dates the payment was made is relative to that month's scheduled payment being due the UPB should be around $29,689.27.

There is only 273 payments between Next Due and April 2017.

You can't use the full payment in that calculation it includes interest.  The daily per diem interest is 0.0222%.  (Rate/360)

Trustee used $202.05 daily interest.  I came up with $200.  That daily interest times the amount of missed payments is $54,600.

Interest Due plus Unpaid Balance plus Advances would be what you issue the demand for.  Usually you don't collect on late payment fee since the payment is not actually being made.  So looks like it comes to around $86,279.02.  

UPB = $29,689.27
Interest Arrears = $54,600
Advances = $1,989.75

Are you sure the $69,008.05 isn't the amount to reinstate?  273 payments at full P&I would be a reinstatement not a Total Due.  

3.  Oh...just did that LOL.
4.  You give a per diem interest and extend the calculated date out to a logical time.
5.  Foreclosure is the termination of the right or equity of redemption due to a breach of contract.  You don't foreclose on a payment you foreclose because a non-payment is a breach.  
6. HOA deed - depends on priority in title. Might be able to buy that deed and simply satisfy this deed of trust and quiet title if needed. As long as there are no other interested parties in title above the HOA lien and below you.

Hope that helps.