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Updated almost 5 years ago,
Purchasing a Non-performing Note
Hey All,
I have the opportunity to buy a note from a bank on a commercial office property for well under what the property is worth, about a 40% discount. I have attorney's involved but am not clear on this process. I know the owner being foreclosed on and there are two mortgages on the property. I would be purchasing the first standing note. The owner is looking to be foreclosed on quickly as the remaining debt that he owes elsewhere will be wiped out.
Could there be risk from the second standing mortgage holder upon foreclosure? The outstanding balance is $396,000 that is accruing interest of 9.75% on a daily basis as it is in default. Any and all advice would be appreciated. Thanks!