Note Investing No Win Situations

[Chris Seveney]

Wanted to share a recent no win situation. Have a borrower in BK and we filed post petition fees for proof of claim and a plan objection (since they originally did not include property in BK). Now the defense counsel has requested a reduction in the fees we are charging or they will object to the plan. If they object it will cost me $500 to file against the objection or just reduce it by $500. 

Either way we lose. This has also been a loan in BK for over a year without a plan approval. 

[Tracy Z. Rewey]

Originally posted by @Chris Seveney:

@Tracy Z. Rewey - have I convinced you yet to get into NPL's or CFD's.... :)

LOL - Not yet on the NPLs. I jokingly say I buy enough performing notes that go NPN I don't have to go looking for them :) to which all my NPN friends answer... but wouldn't you rather have bought at NPN prices? Fair enough response. I have bought some decent reperformers lately.

CFDs I've bought since the late 80s. I prefer them from Mom and Pop sellers over the "Headline News" CFD sellers. I do like to convert them whenever possible to a Note/Deed of Trust or Note/Mortgage. The buyer gets the benefit of having the Deed and I have a more marketable product on the secondary market.