How to approach defaulted paper - Posted by Troy M

Posted by Troy M on May 19, 1999 at 13:32:53:


I received a call from a homeowner in preforeclosure and would like to get the lender to discount. However, I have never tried this approach. Can you give me some tips on who to talk to, questions to ask etc.? Here are the numbers:

FMV: $58,000
Loan balance: $44,000
Arrears: $5,000

The homeowner refinanced about a year ago @ 13.5% and has not made a pymt. Seems like a long time for a lender to wait to take action, maybe they’re not too eager to foreclose? Also, I have heard that it is not wise to tell the lender that you are purchasing the property? How does that work with defaulted paper? Thanks for any light you can shed.