All Forum Posts by: Derek T.

I'm here in the SF Bay Area and I've done around 60 projects these past 4 years, flips and holds.  Wondering what it costs you guys to build where you are at.  We usually do our construction without a general contractor and just GC it ourselves.   Here are some costs for labor that we've developed.  

Labor only:

Retrofit a window- $80

Install new window- $100

Framing- $11/sqft

Concrete slab- $6/sqft (include material)

I bought a junior lien and now need to reinstate the 1st.  my worry is that after reinstating, I can't make payments to the 1st.  The trustee has told me the reinstatement amount, and I have a list of monthly payments that need to be made, but they won't tell me who the 1st is and how to get a hold of them to set up payments. 

Great!  Would like to meet up as well.  Hopefully see some of you soon.

I can help with the process.  Been doing this for some time now in the Bay Area.  Where are you looking to buy Arvind?  Hit me up.

I have the itemized list.  I guess, I'm still wondering why the numbers don't add up in terms of the payoff amount and the reinstatement amount. Is it the case you get a discount for paying off the whole thing, i.e, don't have to pay fees?  Or is it the case that the way the calculate the total payoff is different than the way the calculate the reinstatement?  The pay off amount is just the principle plus all the fees and interest that has accumulated.  The reinstatement is to get back to where it was when the loan started to default, i.e when the principle balance was lower than the original balance .

Reinstatement Paper:

Payments from 12/1/2010 to 2/28/2011 $4086.38     Total $12,259.14

Payments from 3/1/2011 to 5/31/2011 $4,106.62      Total $12,319.86

(keeps going)

Payments from 6/1/2015 to 11/1/2015  $4,112.69    Total $24,676.14 

Total payments added up are $245,058.49

Corporate advances: $24,555.76 

foreclosure fees add up to $1642.41

Total reinstatement is $271,256.66. 

Payoff paper

Principle balance $652,318.91

Daily interest $46.22.  (I know the rate is 2.25 above 1 year libor)

escrow advances $38,969.82

Lender paid expenses $24,555.76

Interest $98,845.47

Fees and recording and other trustee fees: $1,842.41

Total Pay off $816,335.37

So here are the numbers for that junior lien I bought. Just got the payoff and reinstatement amounts. I can't figure out what the principle balance will be if I choose to just reinstate the loan. Here are the major numbers I'm working with.

Unpaid Principal Balance: $652,318.91

Total payoff amount: $816,335.37

Total interest: $98,845.47

Total Amount to Reinstate good through 11/12/2015: $271,256.66

Daily interest accrual: $46.22

Is it safe to say that after I reinstate the loan, the principle balance will be $545,078.71 ($816,335.37-$271,256.66)??

I feel like somehow something doesn't add up. Why does it state that the unpaid principle balance is $652,318.91, when the note was originally for only $650,000. Also, why is the reinstatement amount so high, if the total payoff $816,335.37 minus the loan balance $652,318.91 is only $164,016.46. Do you get a better deal if you pay off the entire amount? Is it possible that if I reinstate the loan at the $271k, that the principle balance will be still at the $652k?

So I bought a junior lien and got the payoff and reinstatement amounts. I can't figure out what the principle balance will be if I choose to just reinstate the loan.  Here are the major numbers I'm working with. 

Unpaid Principal Balance:  $652,318.91

Total payoff amount: $816,335.37

Total interest: $98,845.47

Total Amount to Reinstate good through 11/12/2015: $271,256.66

Daily interest accrual: $46.22

Is it safe to say that after I reinstate the loan, the principle balance will be $545,078.71 ($816,335.37-$271,256.66)??

I feel like somehow something doesn't add up.  Why does it state that the unpaid principle balance is $652,318.91, when the note was originally for only $650,000.   Also, why is the reinstatement amount so high, if the total payoff $816,335.37 minus the loan balance $652,318.91 is only $164,016.46.   Do you get a better deal if you pay off the entire amount?  Is it possible that if I reinstate the loan at the $271k, that the principle balance will be still at the $652k?

Hi Andreas, so here is an update. I guess on one of my properties they actually did file the NOD on the 1st. I'm trying to figure out exactly how much I owe now. Maybe you can shed some light.

Original loan balance is 650K

according to foreclosure radar loan balance now at 715K

Default amount $261K

Does this mean if I pay $261K, this notice goes away and I can start making regular payments?  Does this mean after I pay $261K that the loan balance is now $715K?

Hi Andreas, this is truly helpful.  It seems like you need a little bit of luck and a little bit of help.  I have no clue how to get the last 4 of the social from the original borrower and the title company doesn't either.  As for going to a branch, I went to a Wells Fargo branch and they had no clue at all what to do or who I could even talk to.  They kept saying that all they could do is place a call to Wells Fargo mortgage and hand me the phone.  Very frustrating!  

Both of my cases are interesting and different than yours in that the 1st doesn't have a NOD yet. Pretty sure it's not that the note is current. I think it's because in one case Wells Fargo owned the note on the 1st and 2nd, so they decided to sell the 2nd first. Then they will most likely file a NOD at some point.

The second case is something I'm not sure about. I don't know why the 1st hasn't filed an NOD. The original borrower did leak a bit of info to me that the 1st was at like 800k, even though it originally was a 650k note.

Question, when you say that you reinstated the loan, what does that mean?  Did you pay the fees and overdue balance to get the note current again, then start making payments?  Did you pay the minimum required to stop the foreclosure? 

Hey Andreas, thanks for the response.  So now I've purchased two properties where we bought the 2nd, and the 1st still in place.  Wasn't able to establish rapport with the original owners who wouldn't give up the last 4 of their social or let me get info on the 1st.  Now I'm trying to evict them and then eventually just sell or try and bring the 1st loan current and make payments or try and refinance it. Having a real tough time with the banks and having them work with me.  Is it because they want to try and foreclose too?  Is it because they can't legally work with me since I don't have the okay from the original borrower?  I don't understand why they wouldn't accept money from me. 

What ended up happening with those condos where you bought the second and came out ahead? Did you evict?  Did you ever get the pay off info? Did you sell?  Did you rent?  Let me know! Thanks!!!