Posted by Terry Y. on October 11, 2003 at 21:42:23:
Hey Scott, do you know of any books or coures on buying bad paper? Thanks.
Terry Y. P.A.
Co Won’t Sell Notes… - Posted by LeAnne-WA
Posted by LeAnne-WA on August 26, 2003 at 15:36:18:
I posted this on the financing forum but wanted to post it here as well.
I am interested in buying the defaulting paper on a particular property in my area but when I called the company, they said they don’t sell notes - even defaulting ones. She said they buy notes and service loans for other companies, but don’t sell any of their notes for any reason - ever. I’m wondering how often this happens, if this is an unusual situation?
The person I spoke to said they’d be more than happy to negotiate a short sale with me but couldn’t guarantee that they would even accept that in the end! She wants all kinds of documents from me (it sounded more she was trying to qualify me to assume the loan!) and said it would take 30 days for them to make a decision as to whether or not they’d go through with it. It seems like she is just yanking my chain.
Any thoughts on this?
Thanks!
LeAnne
Re: Co Won’t Sell Notes… - Posted by Scott
Posted by Scott on August 27, 2003 at 24:34:14:
LeAnne,
The fact is, some companies sell and some don’t. Some
are just servicers of the loans, and thus don’t have
any say in what happens with the selling of their
notes.
If you do a short sale, most companies will want to
have a short sale package filled out and faxed to
them. These packages are for the person on the loan
though, explaining their financial hardship and such.
When you get a loan that you know the company just
plain doesn’t sell, it’s best to move on.
Good luck -
Scott
Re: Co Won’t Sell Notes… - Posted by LeAnne-WA
Posted by LeAnne-WA on August 27, 2003 at 24:44:49:
Scott-
They told me that whomever was buying the property would have to submit the “package” which she says includes signed p&s agreement, appraisal, 2 recent pay stubs, 2 recent bank statements, financial/net worth statement, and lender commitment form. To me, that sounds more like I’d be assuming the loan, not doing a short sale!
LeAnne
Re: Co Won’t Sell Notes… - Posted by Scott
Posted by Scott on August 27, 2003 at 10:32:26:
That is a typical short sale request. They are
assuming that you want to buy the property. Next time
tell them that you don’t want the property, but that
you are interested in buying the note only.
They’ll say, “Oh. In that case…”
Regards,
Scott
Re: Co Won’t Sell Notes… - Posted by LeAnne-WA
Posted by LeAnne-WA on August 27, 2003 at 15:41:54:
Scott-
That is exactly what I said when she told me they wouldn’t sell the note. I told her I didn’t want the property, just the note and she insisted they couldn’t or wouldn’t do it but that way unless my company was representing the person who WAS buying the property.
Any ideas on that??
LeAnne
Re: Co Won’t Sell Notes… - Posted by Scott
Posted by Scott on August 28, 2003 at 24:33:33:
There are note sellers at banks who “get it”, and
others who don’t. Have you tried a different person
or a different department? It might be afterall a
loan servicing company that really doesn’t sell notes
- like MERS (from my experience).
Regards,
Scott
Re: Co Won’t Sell Notes… - Posted by LeAnne-WA
Posted by LeAnne-WA on August 28, 2003 at 14:02:55:
Scott,
Thanks! I found out that although they do service loans for other companies, they also buy notes from other companies which they hold in their own portfolio, but they do not originate any loans. I also found out that this particular loan is one they purchased so it is one of their own loans.
I’ll follow your suggestion and see what happens! Maybe I did just talk to “the wrong person” after all! Thanks!
LeAnne