What are my chances in discounting mortgage? - Posted by Dianna

Posted by Craig (IL) on July 06, 2002 at 08:39:31:

It depends largely on FMV. If the lenders believe they can get their money back by foreclosing, that is probably what they will do. You would have to convince the lenders that your offer is in their interest.

What are my chances in discounting mortgage? - Posted by Dianna

Posted by Dianna on July 06, 2002 at 24:57:09:

Here’s the scoop…

Property going into foreclosure 8/9. They haven’t made a payment for 15-16 months, and they are at least 30K in arrears. They owe WAY MORE THAN THE HOUSE IS WORTH. In fact, the principal amount of mortgage was for more than the house is currently worth (shame on those appraisers that push value). Anywhooo, the owner contacted me from some of my marketing and says “HELP.” The house is not in a “hot” part of town, but it is in excellent shape. They have dumped some time and money into it, but they are in over their heads.

I’ve run the numbers, and I am willing and able to pay cash for 50% discounted note/mortgage – $110-112,500 (Original Mtg = $225K), but nothing more. Since they are $30K+ in arrears, the mortgage company is owed at least $250K.

I have faxed the mtg co. the authorization to release information completed by the owner, and I’m going to call them on Monday to discuss.


Do I have enough time to do a discount with the mortgage company? (FC sale on 8/9)3

If so, how likely is it for a mortgage company (not a bank) to discount? What are the mechanics (what do I need to buy the note?)

Do I get the deed prior to trying to get the discount, or after?