All Forum Posts by: Dave Van Horn

Francisco,
WOW! I'm not sure where to begin. You said that in a short sales the 2nd only gets $1K. This is totally false. I just received $5500 payoff on a 2nd my company owned in Toledo. We paid $1200 for the low equity note that had a face value of $39K. the 1st mortgage was $105K & the property was worth @ $105K. The short sale went through for $80K.
The 1st , who was taking a haircut, only wanted to allow us to get $2500 in the beginning, but we got them up.
The real answer to your question is it depends. My company literally buys hundreds of delinquent 2nd's every year. If a property has enough equity to back it, you can get a full payoff. We just had one outside Phila. that we paid $65K for, and we got a full payoff of @$120K on it. but there was a boat load of equity. the first was about $250K & the property sold for $620K. As for starting FC, we initiate that on close to
40% of the notes we buy, but we actually FC on less than 8%.
If you buy a loan in a better position, you'll have a higher price pt. & pay more. If I buy a delinquent 1st for $200K, all my risk & $ is tied up in one deal. I might be able to buy 10-20 2nds for the same $$. Hope this helps.

Dave VH

Vikram C.
Steve B. is right. I have a co. that buys 100's of institutional notes, primarily delinquent 2nd's, on a regular basis nationwide. We're not overly concerned with geography because we're in & out in a matter of months on average. We normally purchase non-perf. in bulk from banks & loan servicing companies.(There is a high barrier to entry) We also sell notes that are performing & non-performing to individual investors/note students on a loan level or one off basis.
As for FC, we initiate FC on @ 39% of the delinquent loans we purchase, but we actually FC on well under 8%. Everyone seems to be afraid of the "F" word, foreclosure. But the average uncontested FC is $2-3K throughout the US. Our business model is to not take the property if possible. You can exit a deal either through the Borrower or the property. We generally do better by exiting through the homeowner, & everyone wins!

Dave VH

Will,
Me & my co. buy & sell non-performing assets on a regular basis. The real answer is it depends. What kind of defaulted loans are you looking for?? There are numerous categories. For example: re-perf loans, 1st mort., 2nd mort, delinquent for different time periods, active foreclosure, bankruptcy, etc. [LINK AND SOLICITATION REMOVED]