Posted by Jon Richards on February 25, 2002 at 19:06:21:

The $24088 must be for more than interest and penalties from Oct to Feb. I get only about $8,100 in interest. Who knows what their payment history was?

I doubt you can offer Countrywide a buyout. It will probably be sold at auction. But they may be amenable to a renegotiate loan. See below

A more interesting strategy is to approach the $3,500 2nd lender, and offer them a small amount, say $100 for the second…then promise them if you make any money you will give them more. As it is now, the $3500 will be sold out.

Then you can take over the payments, negotiate with the bank, and see if you can make it work. Many times a bank in trouble on a property, may let you renegotiate the note.

Best of luck

Jon Richards
NoteWorthy publisher
800 487 1864


Posted by Jason on February 25, 2002 at 17:46:48:

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 roughly

The 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,