Note questions and analysis

[Nicholas Heinrich]

So there is a note here for sale.

Can someone let me know if I'm correct? They still owe 6k. If I bought the note for 4k. And they paid off the whole thing I'd make 2k profit

Now my options would be to renegotiate with them say bring down intrest or something so they pay. I might lose some money in that deal but lease it would be back to performing.

Or I could go through with an foreclosure process and take the house. Worth Zillow estimate 100k. In this case I profit 96k?

Have i been correct so far? are there any other options? Where are the cons?

https://paperstac.com/for-sale/2019030618062242564...

[Gene Chandler]

My first thought is... Maybe you should not be investing in non-preforming mortgage notes without a mentor. 

They owe 6k and you pay 4k and they pay it off. They would pay 6k and you would be 2k ahead nothing more. Depending on the contract and state. They owe 6k (called UPB) and you go to the foreclosure sale and it sells for 100k your estimated ACV. You get 6k plus your expenses may be as much as 10k and they, the borrower, gets the rest of the money above what is owed to you... So if it sells at the Sherriff Sale for 100k you get your 10k that you are owed and the borrower would get 90k. A bit long and redundant but I hope this helps.

GC