Posted by John Behle on March 12, 1999 at 21:25:26:
Negotiate the best deal you can, but face value for this note would still be fabulous. The second is behind you, so you will be paid first. If they have any sense, then they will re-instate your loan and foreclose themselves. If they start showing any interest, then I would negotiate to buy out their position at a discount.
Yes, make a written offer and close through a title company or attorney. You will need a careful search of the title and ideally, title insurance. You do need to make sure that you really are the first lien and that nothing threatens your position.
I have an opportunity to pick up a non-performing note and thereby perhaps get the house down the road…need advice.
The deal:
fmv = 40k
my seller sold the house and carried the note which now has a balance of approximately $5k. Her
buyer has not made a payment since Jan. '98 and she is just fed up with the guy and wants to
convert her note to cash.
She “believes” there is a second lien on the property - placed since she sold the house.
The house is currently rented @ approx. $350/mo
Questions:
do I need to be concerned about the 2nd or do I go forward knowing that anybody else out there
has to deal with me first?
do I offer her the balance of the note or push for a deeper deal?
what are the mechanics of buying the note…do I make some form of written offer, do I close at
the title co., etc.
I’ve just never done this so any help would be appreciated.
Bob