All Forum Posts by: Michael Vaughn

Got it. Thank you Chris.
I wish there was a unified system that all counties had to use. Some of them are so bad..

 I know that because that bit of data is in the tape. Of course I am not counting on it to be 100%, but I base my bid on this, and during the DD step I will make sure that is indeed the case. I do not target this types of assets on purpose, currently I am trying to find good deals weather its assets that have not started foreclosure or some that are halfway through the process, if the numbers work, they work.

Do you mean you search the county court records site to get an accurate state of the situation during the DD  step?

 Correct me if I am wrong, but these are all things you get once the price has been agreed no? at the point where you bid on assets you only have a few bits of data on the fc, not the whole picture. Of course, if something meaningful is discovered in the due diligence step that will impact the price but in the beginning you don't have much..

Chris, How do you know the FC is uncontested during the bidding phase?

Thanks for the response Bryan. I'm a non performing note buyer. The question is how much of a cut are we talking about. That is what I'm trying to understand..

Interesting Andy, I think your analogy makes sense to me. Your say you plan on putting a few to bid next month. Are they still non performing? Might I ask why would you want to sell those notes when you are so close to FC? You do not want to deal with the REO's?

I have recently to looks into more and more deals which includes loans currently in advanced foreclosure status, for example , anything from a few hearings done to FC sale date set and it is 30-60 days.

How do you change your price offer in the bid stage to address that, given everything else equal? For example given a mortgage loan where the debt is 60% of the house value (so we are covered in equity 100%), borrower has not paid in years. in general I would have offered anywhere between 50-65c on the dollar on such a loan, depending on a few other factors, how should that change given the asset is very advanced in the fc process? (one would even say why they sell it if the the sale date is so close). Keep in mind this is before doing any due diligence, so we don't know exactly all the details.

@Cody L. You are exactly right, that's why I not planning on sending the money to seller as is..

@Don Konipol Will the title company hold the funds till the seller sends all the physical documents and signs the assignments? What is the purpose of the title insurance in this case if I have ordered and O&E report and saw that everything is in order?

I would like to purchase a note from a company I have been in contact with. I do not know them besides having a few calls with them, they seem legit but I wiring a large sum of money to an entity I do not fully trust is not something that sits well with me. Are they companies that do escrow for these kind of deals? I do not need such a company to actually do the records I have a vendor who does that, I just need that 3rd party to hold the money while the seller fulfills their end of the deal i.e sending the physical collateral and signing whatever is needed.  What do people usually do in such cases?

Thank you my friends, I was afraid of this kind of deal since I was not aware this could work, but I understand. I have started my due diligence and hopefully everything is in order and this will be a done deal. Thank you!

Hello fellow BP investors. I have gotten a lead to a deal that is basically buying a note that was just created a month ago, buyer gave down payment of 25,000 on a house sold at 75,000, and the seller is now trying to sell the note (50,000 balance), before any payment, and is willing to sell it at a discount (I believe its gonna be around 10% discount). Something does not feel right to me. Why would someone sell a 50 grand note for 45, a month after the sale? the rate of the loan is 11.5%. Is this a scam?

this is how it looks in the servicing comments :

Good faith payment of X by 03/03/2019
Estimated UPB: $X
Rate: X%
P&I payment $X/m
Term: 300 months
3 month trial period starting 04/01/2019

there is no official document. that's it, what I listed here, from the servicing comments.
now notice the UPB in case its 297 or 300 payments is very close, a difference of 200$ or so. (Just like Mike Mentioned, due to the future value of money).

Regarding the price, this is to be purchased at a price of a non performer. Just like you say 2 months is not really something that would be considered as performing.