All Forum Posts by: Michael Vaughn

I'm currently in the due diligence of a note, perceived as non performing but as I started to inspect the file I have noticed the current loan services company has reached a 3 payments trial payment plan agreement with the borrower, and two payment has already been done. Servicing comments shows 3 trial payment, with the offered plan is 25 years at a certain rate, and an estimated UPB.

My question is, are the 3 payments part of the 25 year new loan or not? Is it going to be 297 payments left after he (the borrower) completes the trial or 300? UPB listed by in the plan is said to be estimated and If i calculate what UPB I get from either 297 or 300 payments, given the payment and rate, both numbers are close (300$ difference). I wanna make I don't leave money on the table plus I am not breaking a rules.

 I see. Thanks for the information, will take that into consideration.

Ok, I understand that sometimes I will need to foreclose, thank you for that.

Regarding the liens, that sounds like a serious issue. If there are no such liens when I buy the property, what kind of liens can be added later? Is there something in the contract of the CFD that gives me some power over the borrower, in case he creates a cause for such a lien?

Does all of these mean you stay away from CFD's?

I was recently sent a tape of only CFD loans and I am trying to understand the difference between that and a regular mortgage.

From what i understand the difference between a CFD and a regular mortgage are (correct me if I am wrong) Are:

• If the borrower defaults it does not matter how much money he paid so far, he loses the house
• It is more easier to take possession of the house in a process called forfeiture (unless a certain amount of time has passed in some states, then a normal foreclosure is still needed)
• Usually these houses will be in worse shape, worse neighborhoods then it would have been was it a normal mortgages since the people who take these loans could not have taken a normal mortgage, hence they are not doing well financially 

Are there any special things to look for during the due diligence phase of buying a CFD that are not done with a regular mortgage?

Thank you

Good morning fellow BP investors, I recently started getting tapes with no column that shows the amount of months left for the loan, a crucial bit of information.

If i take the next due date and the maturity date and subtract the two, will that always give me the correct amount of months left? I think it is but i wanna make sure I am not missing anything or there is some condition in which this does not apply.

Wow great stuff gentleman, learning so much

from what i understand both of these are part of the total legal balance one way or the other, is there something in the distribution of these that might cause you to think differently on a deal? say you have the following two deals in front of you 

A - 100k upb and 150k total legal balance, most of the difference is Corporate Advances

B - 100k upb and 150k total legal balance, most of the difference is Deferred Balance

would you prefer one over the other?

also, is a large value in one of them a reason for concern?

Hey, Started to gate tapes from different sellers recently and i noticed a few columns which i'm not sure how to interpret and what is their impact - Corporate Advances/Deferred Balance, can anyone shed some light? isn't those part of the total legal balance?

Great, Thank you Wayne and Chad

Hi

In case a borrower is able to get foreclosure rejected, say for missing assignments or any other technical detail for that matter, can the lender file for foreclosure again (assuming the loan is still delinquent) once all the issues were sorted out? I am asking both in general and also in regards to a specific deal I'm currently reviewing in North Carolina.