All Forum Posts by: Anh N.

Thanks!  Do you know how much it normally costs to foreclose in KY?

Hi,

I purchased a second mortgage on a non-primary residence that is in default. I'm hoping to work out a modification with the borrowers to start receiving payments. This is the only loan I own in Kentucky. Balance is less than $50K. I'm an individual real estate investor but use a LLC. I purchase less than four loans/year and do not originate loans. I use a licensed loan servicer to handle notices and collect payments. Am I required to obtain a mortgage license in KY? If I'm not required to have a license, can I still foreclose on the property if the borrowers don't pay? Thanks!

I have purchased other notes where I'm making a good return.  This is the first one I'm considering that is in bankruptcy.  There is enough equity in the home to cover the 1st and 2nd.  I understand that I get the payments from the trustee.  I think when I look at the repayment plan, I don't see how the borrower will be able to make the monthly payments based on his salary reported.  I think I would eventually have to foreclose to get all money owed after the five years and wondering if it's worth the hassle.

Hi,

I'm looking into purchasing a second lien note where the borrower is in Ch. 13 bankruptcy.  There's $80K in arrears and $100K principal owed. The seller of the note is asking for $85K.  Under Ch. 13, the borrower will pay back the $80K arrears over 5 years.  I start getting payment on the $100K principal and interest after the five years.  Is this a good buy?  It seems like I'll be making zero interest in the first 5 years which doesn't seem like a good strategy.  Any feedback would be appreciated.  Thanks!

Hi,

I'm the second lien holder on a property that is being foreclosed on by the first lien holder.  My loan is not getting paid either.  I believe the property has equity above both loan amounts.  I want to contact the first lien holder and pay the outstanding balance and start my own foreclosure to make sure my position is protected.  I called the trustee company and they won't give me any info on the account unless I get authorization from the borrower.  Is there someone else I should be contacting at the bank to pay the outstanding amount?  It's less than $15K.  Thanks!

Hi! I purchased a NPN and was in the process of foreclosing. The borrower has requested a loan mod. The original loan docs state that if anytime borrower is in default, the interest rate can be increased to 24.09% from 16%. Can someone tell me if it's legal in CA to charge that high of an interest rate? Loan originated back in 2007 and is for an investment property. Thanks!

Thank you Dion!  This is very helpful.  If there is a surplus but no other junior liens, does the overage go to the borrower?

Hi!  I own a second non-performing note on a property in CA.  I'm foreclosing on the property.  If I want to keep the property, am I allowed to go to the auction and bid up the price so no one else will purchase it?  I realize I will then have to make payments on the first lien.  Thanks!

Thanks!  The speaker must have been referring to originating new loans with the borrower.  Appreciate the feedback.

Hi!

I recently attended a meetup where the speaker said that if you buy non-performing note, you can work with the borrower to modify the note so they will start paying again.  But then she said you can't change the terms or sign a contract for a new loan with the borrower because it may violate the safety act.  I had to leave early and couldn't ask for clarification.  Can someone please clarify what she meant by that?  Doesn't modification require changing loan terms and having the borrower sign a contract agreeing to the new terms?  Thanks!