All Forum Posts by: Account Closed

Ah ok, think I follow now. So if they set the foreclosure bid at the full balance they would have probably ended up with an REO. And if they set the bid at less than the full balance, there would still be a chance that they end up with the REO (if no one else bid). So rather than deal with either of those scenarios, they just sold the note at a loss to you and moved on

@Jay Hinrichs - so the thrift was selling you the notes to avoid the 3% chance it becomes an REO and they have to mark to market? That's amazing ha

Got it, that makes sense (and can't blame you re FCI..) Thanks Mike!

Thanks for the feedback guys, this is great. @Wayne Brooks I read similar on Albertelli so that's good info to know.

@Mike Hartzog - so I assumed I could do it your way, but when I first spoke to FCI about the FCL process, I was surprised to get the feedback that "If you ever need to initiate foreclosure on any of your loans, FCI would need to initiate with an attorney in our network". Are you using FCI, and then able to use your own attorney/trustee because it is kept at the basic servicing level? Or are you using another servicer, and it's just that FCI is more strict than other servicers when it comes to who your attorney/trustee is? As a note, they told me this even though my loan is performing and not in the full-collection level (I was just asking them about FCL to prep ahead of time)

Sounds like @Tim S. got the same feedback from FCI as I did, but is adding his representatives to the network to work around it?

Hello BP

The servicer I use said that if I needed to go through a foreclosure in Texas I would have to use one of their approved attorneys below. Was curious if anyone has had experience with one of these firms? Just want to get a head start on the vetting process

• Albertelli Law
• Rose L. Brand & Associates
• Special Default Services Inc_Trustee
• Choice Legal Group, PA dba: Miller, Watson and George
• Waldman & Kaplan, PA 

@Jacob R. Do you live alone? If so, could you get a roommate or airbnb a room for extra cash flow?

You know, I was actually thinking about this last week because I was brainstorming ways to further cut living expenses while living downtown (e.g., rent an ADU until I find a solid house hack opportunity). Would love to see the ordinance pass, seems like a no brainer

@Matt Millard - the garage loft is interesting. How did you come across that?

Yea it's common for hazard events (e.g., fire). Not sure about intentional damage by the owner though. If you use FCI they direct you to Ross Diversified Insurance Services (who brokers for Overby Seawell Company). Make sure to check if your property is in a flood zone too

I wanted to vote @Edward B.'s comment 10x but I couldn't figure out how to do it...

Note for readers, just google "How to use XIRR in excel" when calculating note returns, especially if you are buying several years into the note's life and have misc costs like servicing. Frank Gallinelli's book also breaks down the concept so well

@Bob M. - I think there may be something missing to those numbers. I just had a look at a recent PPR note and the interest rate was in the low double digits (not 5%). Otherwise I can't think of how buying a 5% loan at 100% UPB will come out to a 12% IRR.