Mortgage Note Arrears

[Al Kirk]

For the experienced mortgage note buyer....

My question has two parts:

1.

If I am purchasing a non-performing note do I add the arrears as fees to collect from owner when modifying the original note?

Just a scenario:

last time the owner made a payment was 30 months ago 

UPB of 10,000

150/month payment

Total in arrears: $4,500

Modified Loan from the $10k

2.

Are there any special servicers that you recommend with decent pricing for loan mods? Or, is a local attorney the best option?

[Chris Seveney]

@Edward Seward

There are many reasons. I have had borrowers not pay for years and moment they get demand letter they pay and I have had others who have paid for long time go dark. It’s hit or miss and no rhyme or reason many times.

Just be cautious and buy it based on worst case scenarios. I see to many people bid on what they think may happen and not worst case...