Posted by Jason on February 25, 2002 at 18:51:31:
What's the chance I can discount this note in foreclosure? House worth $185,000. Schedulled to foreclose mid-march. The owner will deed me the house, so I had her give me copies of the payoff balance she just received from the lender on the first mortgage. Here are the details:
1st mortgage principal balance:
$138850 (loan originated 7/99)
interest from 8/01 to 2/02: $24088
Fees due: $15
attorneys fees: $1897
escrow balance: $2983
Total due for payoff: $168780 roughlyThe note is in 1st position held by Countrywide Home Loan Servicing and is FNMA backed (does that hurt a discount?)
My first question is does anyone know what the interest owed ($24088) is for. This note has a adjustable rate mort. of 10%. Is that $24088 including arrearage? I am not sure what that $24088 is for. I am looking at 3 ways to buy. Either short sale on the note or possible assignment of note for a discount. My last idea is buying subject to depending on what the arrearage is. There is a privately held second of $3500 which I will hope to discount. If the original note is for $138800, does anyone think that I could offer them that so they are at least getting their initial investment back or maybe offering 80-90% of the $168000 total payment. Would this type of lender possibly go for any of these strategies? Any other thoughts are welcome!
Thank You,
Jason