Posted by Michael Morrongiello on March 04, 2002 at 16:36:05:
Terry:
Unfortunatly you are holding a very HIGH RISK “throw away” type 2nd lien Note that is sitting behind a 1st lien that is much larger than it, and also where the total equity this buyer has in the property is minimal.
Since a borrower will more likely fight, claw, and scratch before jeopardizing a lot of equity they may have in the property, this is NOT the case here as this borrower has little real equity to lose. On top of all this if there ever were a default that took place, by the time you are finished paying your attorney, court costs, filing fees, all the while not collecting payments, any equity that may have existed has evaporated.
Your Note is akin to unsecured credit card debt and we’ve been known to purchase such paper for .25 cents to .35 cents on the dollar IF we can get comfortable with the payor, their credit, their performance on the note to date, and their performance on the underlying 1st lien Note…
To your success,
Michael Morrongiello