All Forum Posts by: Brooke T.

Thank you for your super helpful and positive answer! I have a copy of the original DOT showing a 30 year maturity but not the interest rate, and calculated it based on 4.5% which is a couple points higher than the average rate at the time the mortgage was originated.

Does accumulated interest accrue at the same rate as the note bears and would it, once delinquent, calculate somewhat like negative amortization from that point (except $0 being paid) plus the escrows and fees also bearing interest at the same rate? Am I understanding that correctly? 

In reading through some judicial foreclosure court cases, I've been able to see how the foreclosing plaintiffs are calculating the balances on their delinquent promissory notes, these are not subject to all of the same regulations, but it seems similar to what you summarized above. These were all fully amortized notes, no ARM or balloon payments. 1st month Delinquent balance x1.09 plus the next month payment then total balance delinquent x 1.09 and so on. It became very expensive QUICKLY!

Hello All!

I'm looking at purchasing a property subject to an existing Deed of Trust.(I'm bidding on the second position) The owner passed away in early 2019. There was a Notice of Sale on that DOT posted in February 2020 and subsequently canceled 6 months later. I have ran the amortization at the interest rates for when the loan was originated, and have a good idea of the balance was in early 2019, February 2020, and August 2020 when the Trustees sale was canceled. Does anyone know of a formula to calculate (Guesstimate really) the current balance assuming the mortgage is currently delinquent? I'm not sure how delinquency compounds in amortization? Additionally, If the Trustees sale was canceled, is that reason to believe it was potentially caught up at such time? Called the Trustee to ask, and not surprisingly they were no help. I do know 100% that the second position did not pay the delinquent balance to protect their position. Either the bank just decided to cancel the sale (but why would they do that?) meaning the mortgage is now close to three years delinquent; or possibly an heir or someone caught the payments up, but didn't bother transfer title, and is now letting the second foreclose?? I'm not sure what to make of that but if anyone has a formula to calculate how delinquent payments are compounded, something I could use to get a rough estimate of what the worst case might be that would be FANTASTIC!!! Thank you so much!

@ Daniel Mears 

Yes that is what I'm trying to do, but have no idea how to get the information to make the payments, and the account number and such.,

Hello Everyone!

I have VERY recently started acquiring property through judicial foreclosures, where I am bidding on the second position and acquiring the property subject to a first mortgage/DOT ( and a 6 month redemption period). I've always planned on needing to pay the first position, in full, and immediately after the end of the redemption period, as that when title transfers.

Last week I got my first Sheriffs Deed, and called the bank to see if I could negotiate a lower payoff. They weren't interested in doing that, which I expected, but figured I'd give it a shot anyway. Surprisingly, they also weren't concerned to learn that the property had been foreclosed and that title had transferred (I guess this was news to them!) , and weren't trying call it due/exercise Due on Sale clause. I guess they don't care where the money is coming from as long as its paid!!?!

Which leads me to my question....

Has anyone had any experience/success with getting the bank to let you assume the existing loan?

Alternatively, is there a way to get the information need to make the payments and just start sending them in?! I'm not sure how I would get the account number or an answer as to what amount is needed to make the loan current over the phone as I'm not the borrower.

If I can get that info, do they care that the payments not being made by the borrower but by someone else? This bank didn't and I don't know if this is the exception or the rule.

Has anyone had a bank call the loan due because of a title change due to a junior lien foreclosing?

If I can start purchasing the second position based on needing to make the first loan current, but not necessary whole immediately, that will be a game changer for me and I super appreciate any feedback/ experience/ suggestion/ advice anyone has!!

Thank you so much for reading!

Hello Everyone! 

I have VERY recently started acquiring property through judicial foreclosures, where I am bidding on the second position and acquiring the property subject to a first mortgage/DOT ( and a 6 month redemption period). I've always planned on needing to pay the first position, in full, and immediately after the end of the redemption period, as that when title transfers.

Last week I got my first Sheriffs Deed, and called the bank to see if I could negotiate a lower payoff. They weren't interested in doing that, which I expected, but figured I'd give it a shot anyway.  Surprisingly, they also weren't concerned to learn that the property had been foreclosed and that title had transferred (I guess this was news to them!) , and weren't trying call it due/exercise Due on Sale clause.  I guess they don't care where the money is coming from as long as its paid!!?! 

Which leads me to my question....

Has anyone had any experience/success with getting the bank to let you assume the existing loan? 

Alternatively, is there a way to get the information need  to make the payments and just start sending them in?! I'm not sure how I would get the account number or an answer as to what amount is needed to make the loan current over the phone as I'm not the borrower. 

If I can get that info, do they care that the payments not being made by the borrower but by someone else? This bank didn't and I don't know if this is the exception or the rule.

Has anyone had a bank call the loan due because of a title change due to a junior lien foreclosing? 

If I can start purchasing the second position based on needing to make the first loan current, but not necessary whole immediately, that will be a game changer for me and I super appreciate any feedback/ experience/ suggestion/ advice anyone has!!   

Thank you so much for reading!

Thank You! Your feedback was so helpful and on point! Im also in AZ! Would you mind connecting with me so we can talk more? 

@Bob E.

Arizona, Im sure I will find someone who will do this, even if I have to pay extra. Just a matter of finding an investor friendly title agency. There was a mortgage but only for 16k and since the bid was ran up enough to cover the HOA and that, the prior mortgage is now extinguished.

Arizona, Im sure I will find someone who will do this, even if I have to pay extra. Just a matter of finding an investor friendly title.

Hello Everyone,

I'm struggling to find a title agency to insure my seller carry back on a property I secured out of HOA foreclosure, but I know its just a matter of finding the right investor friendly company.

Through this process and talking with several different companies, I've been told more than once that the reason they don't insure HOA or Tax lien properties is because the owner could sue them over being foreclosed on due to this; as its 'not fair they lost their property due to such a small amount'.

Has anyone ever heard of anything like this before?? I don't understand how a title company can be held responsible for anything that happens after the policy, as it insures from the time it is purchased and any defects prior. I was told by one of the escrow officers that this was a big problem back in 2008, but am skeptical, as to me it makes no sense,.. any experience with this anyone?

Thanks! also the first mortgage is being extinguished through the excess proceeds of the sale so this note will be in first position.. @ Will, makes sense, thank you!