Posted by Anthony Ellis on February 28, 2004 at 01:38:13:
I want to thank you for your site, I have to reread some of your articles and really think how I can use your concepts creatively. I was wondering if you could use notes to take control of preforeclosures. For instance, I called an Attorney today on a deal that has been in default since 12/24/03. Its value is around 1.8 million and it has mortgage $879,007.08, at 8.75%. I am not trying be impressive with big numbers. I was wondering if you could do a simultaneous closing using a note buyer as partner knowing that they have funds available quickly. Lets say I partner giving notebuyer a chance to restructure defaulted note once house was sold at auction. So paper pro partner using his stable of private lenders funds a
structured discounted buy of original note, then the house is sold at auction. Notebuyer restructures creates a new note to create nice fat income stream with terms he wants. In example above, let's say house sells in 60 days after purchase of mortgage for 1.5 netting $600,000 with split of equity. Notebuyer could create acceptable note customized for credit of auction winner for more than $879,000. With favourable term for whatever exit strategy he applies. This in theory gives bank a quick solution. Finder is happy. And notebuyer gets large note as he likes it, giving investor source of unlimited funding to approach banks with cash offers on a nice jumbo level. Is this a realistic application. Or How Would you do it. Or lets say we take existing loan sub to and cash out buy creating a wrap with favorable terms to cash out a partial for each investor finder and Paper Pro. Didnt mean to ramble.
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