Paperstac Non-Performing Underwriting Model

[Peter Halliday]

New to notes.  Bought my first Performing note on Paperstac.  I was looking at making an offer on a non-performing note.  I was building an excel underwriting tool myself.  I've taken a commercial real estate course on building commercial real estate underwriting, so this is something I feel I can do.

I was using one of the non-performing notes I was interested in as a case study for building it. I noticed some big problems. When you calculate the payment on what was listed as the original balance, it was MUCH higher as the current payment. The Total Payoff was way higher than the UPB plus the Total fees. A payment based on the Total Payoff, was closer, but still not exactly the same.

My assumption is that when a non-performing is bought a couple of times and the loan is changed and then they become non-performing again, is it common thet the new loan details sometimes isn't don't correctly.  

[Chad U.]

It is very common that the payment amount is way off compared to the original amount.  This is generally because there may have been a loan mod (or 2 or 3) along the way which changed the loan terms and payment.