All Forum Posts by: Joshua Andrews

Does anyone have experience using an escrow company to facilitate a note pool transaction? I know they say do business with folks you trust, but at some point the numbers warrant protecting yourself. Can anyone recommend a good escrow company for a note (paper asset) transaction?

Josh

To follow up on your post, I re-read and see you did call them. Typically I get the HOA manager, not the attorney. An attorney will try and charge for anything they can. Go figure.

Josh

I would just call the HOA yourself. I have found they are not difficult to get a verbal payoff from like a bank may be. I just did that today when performing due diligence on a loan and it's worth knowing, especially in a super lien state.

Josh

Joe,

For your first note I would strongly suggest avoiding both of these. I am assuming these are 1st liens. The actual property value is so low you will be hard pressed to see a return here. NY is a horrible state to foreclose in (takes years) and AL is a right of redemption state. My advice is to purchase a small, performing note first to see how everything works. That's how I started and I'm glad I did. I would suggest placing bids on assets from FCI Exchange. It's a safe, learn-able process compared to Watermark. Watermark is not where you want to cut your teeth, IMO.

I also work mostly with 2nds, so while I do know a good deal about 1st liens, they are not my specialty.

Josh

Joel,

I am located in Austin TX. If you are serious about selling, feel free to message me with more details. Particularly regarding what amount of cash you need and why. I buy partials as well full notes.

Josh

I use my servicer. They send out everything. No need to have another step to hassle with.

- Josh

I would have to side with the above comments about the party definitely not being over. People are and will continue to default now and into the foreseeable future. Will pricing and volume remain the same in future years as it is now? Probably not. It's a flexible market. But you will still be able to buy NPN's years from now. However the learning curve is steep, so keep that in mind moving into this space. Much study, learning and due diligence is needed to sort the wheat from the chaff with regards to assets.

Josh

Sweet!

@Christopher Winkler Well said and good post. This is the reality for the majority of loans. Not all, but the majority.

I agree with much of the above comments here. I have found it usually takes initiating and sometimes actually following through with foreclosure in order to get the borrowers to communicate. You will experience the occasional borrower that will contact you after the shock package or demand letter. But for the most part they tend to wait to the last minute. 

I have a borrower currently who has completely avoided communicating with us even though they have been notified the foreclosure is taking place next month. They have been served papers personally by our Attorney's representative as well as a peace officer. This was handed to them at their doorstep. In the scenario I described, the borrowers are still paying faithfully on the 1st mortgage so I know they are planning to stay in the home.

Borrowers oftentimes wait until they are just about to lose the home or being evicted before doing anything about it, especially with 2nd liens. I would recommend simply moving forward with legal and letting your attorney handle the rest. If they are paying and current on the 1st mortgage just move forward and let legal bring them to you or take the property.

Josh