Real Estate Investor · Seattle, WA · Member since 2010 · 17 posts · 4 votes
Hello all,
I have an opportunity to buy a note directly from Kondaur Capital. The note is currently non-performing and the homeowner filed for Chapter 13 bankruptcy four months ago.
I like this note and the property - it's right in my area of operations. I have some questions:
1) Is it easy to deal with Kondaur? What kind of bids are they looking for?
2) How does Chapter 13 bankruptcy affect the note? I am not too familiar with BK notes. I do understand the process of buying and processing pre-foreclosure NPN notes but I'm new to BK NPN notes. Do they add a new layer of complexity? How would you go about processing a BK NPN note if you buy one? Can you do a deed-in-lieu? Do you need court approval, lawyer, etc.?
3) What is the "normal" bid percentage on the UPB of a BK NPN note? I understand that bid percentages range from 30% to 40% of UPB for pre-foreclosure NPN notes and sometimes higher, depending on the collateral. Do BK notes command lower bids?
Kondaur is kind of easy to deal with but prices are high at times. California i know they want like 67-70% current market value i don't even look at upb. If its BK NPN you have 3-6 month wait before you really can move on the property. If the buyer is willing you could do a deed-in-lieu. If you are California note buyer please email me with any other question.