Need help calculating the principle balance- bought junior lien

[Derek T.]

So I bought a junior lien and got the payoff and reinstatement amounts. I can't figure out what the principle balance will be if I choose to just reinstate the loan.  Here are the major numbers I'm working with. 

Unpaid Principal Balance:  $652,318.91

Total payoff amount: $816,335.37

Total interest: $98,845.47

Total Amount to Reinstate good through 11/12/2015: $271,256.66

Daily interest accrual: $46.22

Is it safe to say that after I reinstate the loan, the principle balance will be $545,078.71 ($816,335.37-$271,256.66)??

I feel like somehow something doesn't add up.  Why does it state that the unpaid principle balance is $652,318.91, when the note was originally for only $650,000.   Also, why is the reinstatement amount so high, if the total payoff $816,335.37 minus the loan balance $652,318.91 is only $164,016.46.   Do you get a better deal if you pay off the entire amount?  Is it possible that if I reinstate the loan at the $271k, that the principle balance will be still at the $652k?

[Dion DePaoli]

Sorry took me a moment to respond.  The Seller and/or Seller's servicer should be able to deliver the account details to you.  

That said, reinstatement includes both principal and interest.  So if they are 10 periods behind the reinstatement value would be 10 months of full payment.  This brings the loan current and advances the payment date in line with the amortization schedule on the loan to today's date.  When you get the pay off the interest arrears is separated from principal as a line item. When you reinstate a loan principal and interest are together as the borrower is X payments behind. Not collecting principal (which can happen at the direction of the mortgagee) would create a balloon in the loan since their principal would be 'behind' in the schedule and the maturity date remains static unless modified.  

So to glean this loan:

Total Payoff = $816k 
UPB = $652k
Interest = $98k
Advances and Fees = $65k

Reinstatement = $271k
Advances and Fees = $65k
Payments Behind = $206k
Principal pay down in reinstatement = $107k 

As Wayne mentions the loan interest is pretty darn low.  The loan looks like it over 6 years behind.  P&I is somewhere around $2,500 per month range.  And remaining term looks like it should be somewhere around 280 periods left.  (tough to zero in exactly without a little better inputs)  All that makes it look like these folks got a modification and didn't make any payments post modification.  Not a great candidate for reinstatement.  

The obvious idea there is you should have a copy of the modification which also should be recorded. I would be pretty concerned if it is not recorded and you do not have a copy.  

The $65k in fees could be challenged which means you should have the accounting for all the fees and advances made from the Seller/Servicer.