All Forum Posts by: Joshua Andrews

That makes sense. Thank you for explaining that Bob.

- Josh

I have heard several people refer to "note tails". Or "putting a note tail in my IRA". Could someone shed some light on what that means? I'm guessing it's buying a certain number of payments on a note, or..?

Josh

I'm interested to hear the replies on this one :)

- Josh

I apologize for the late reply on this thread. I appreciate everyone's input.

To clarify I was asking for specific items to remain aware of on owner originated loans. From the thread and other info I've read, it seems the best route would be to have an attorney review the loan docs for compliance with today laws. I would use an attorney located in the same state the loan was originated in.

To me this seems the most sensible route based on your feedback and what I know.

Thanks for your responses!

- Josh

Daniel,

Thanks for your post. Do you have the link to the Youtube video your referencing? I was unable to find it. If you still have the link you can PM me with it.

Thanks!

- Josh

When buying privately originated mortgage notes (owner financed) what documentation should I be looking for to ensure the loan complies with new lending guidelines?

Interested in hearing feedback from seasoned folks.

Thanks!

- Josh

Thanks guys I appreciate the response. I think this clears it up for me a little more.

- Josh

From a note owners perspective, I'm a little confused regarding what happens to excess equity when the note owner is forced to foreclose.

Lets say for example, I own a 2nd mortgage. For simplicity lets assume there is 30k excess equity after the 1st and 2nd lien are paid in full. Debtor defaults and I am forced to foreclose. Who receives this extra 30k equity?

My second question: Does this answer change if there is only a 1st mortgage and note holder is forced to foreclose and take over the property? To me it would seem they are now the new owner, and can sell the property for anything they like.

Can someone more seasoned than myself explain this in laymen terms?

Thank you!

- Josh

Thanks Joe,

Well there are a few reasons I'm interested in NPN's. Don't have time to list the entire thing here. Appreciate the feedback on pricing.

Josh

First off I'd like to thank everyone on BP who has been providing valuable feedback to me over the last few months. I am in the early stages of building my note investing business, and thus have questions. I can think of no better place to use as a reference other than BP, so thank you to everyone who has contributed.

I'd like to get your thoughts on note pricing. Specifically non performing 2nd lien mortgages which are underwater. I'd first like to acknowledge that I'm aware there are many variables which determine pricing. As such I'm looking for basic estimates to give me some kind of benchmark when placing bids.

I am looking at scenarios which contain the following:

- 2nd lien mortgages which are non performing

- 1st mortgage is performing

- Primary residence

- CLTV is underwater, typically from 105% to 160%

- Loan has been delinquent for at least 2 years or more

- Non judicial foreclosure states only

I'm aware that we bid on UPB. That being said, I have seen bid recommendations for assets similar to the above with pricing ranging from 5% to 25% of UPB.

For you experienced note investors out there my question for is this. What range would you be offering or think is fair given an asset with these characteristics?

I appreciate the feedback!

Josh