Posted by Natalie-VA on May 08, 2007 at 09:12:08:
I would be really careful on this one. First, you need to have a good idea of where the bid will go to figure out if you’ll get paid. Second, you should be very cautious about the amounts due to the 1st and 2nd. Make sure that those numbers are really payoff numbers and not just an estimate of principal due. If the borrower is delinquent on those notes also, the actual payoffs could be thousands higher than you think.
Once the borrower files bankruptcy, the lender has to ask the court for a “relief from the stay”. The borrower could drag this out while those payoffs continue to increase.