Posted by John Behle on January 22, 1999 at 16:10:45:
The face value and current balance are usually interchangeable - the same thing. Some refer to the face value as the original balance of the note. The only way that stays the same is if there are interest only payments.
The total of the payments never exceed the value of an amortized note. If someone has stated that in an ad or conversation - then something is wrong or has been left out.
Toe Dipping - Posted by Berwyn
Posted by Berwyn on January 19, 1999 at 19:48:56:
Thinking about getting my feet wet by picking up a small note for my own account, not to flip.
Found a number of notes in one of the note listing services that look interesting, one on property just down the road from me a piece.
Not sure how to go about making an offer.
If someone is asking 80 cts on the dollar, do they mean on the face value or on the
outstanding balance?
Also I’ve noticed that on a couple notes, the monthly payments multiplied by the number of
pmts outstanding (no baloon) is less than the outstanding balance. In one case it was about
half. Is this correct? How does this happen?