FOR SALE: PERFORMING NOTE (TEXAS)

[Guy Gimenez]

• Location:         608 N. Sam Houston Blvd.San Benito, TX 78586
• Prop. Type:     12 Unit Apartment Complex (2 buildings)
• Sale Date:       June 30, 2011
• Sale Price:       $250,000
• Down Pymt:    $40,000
• 1st Balance:    $210,000
• Loan Type:      Wrap Mortgage
• Appr. Value:     $250,000;borrowers stated they did $20K in renovations in 2011
• Occupant:       Non-owner occupied
• Mth. Pymt:      $2059.38
• Int. Rate:         8.5%
• Term:               30 yr. fixed
• Remaining:     319 payments
• Next Pymt:     March 2015
• Avail. Docs:    Note, D.O.T., MTP, etc.
• Borrower:       3 family members
• Additional:     Payments made directly into Note Holder’s acct. by borrower
• CONTACT:     For more info or to submit best offer, call/text 512-902-8697

[Jerry W.]

Why would anyone buy a note where you would you lose $40,000 if it was paid off tomorrow?  The interest rate is triple what someone could get with decent credit so there is a huge incentive to refinance it.  If their credit is bad then the note would have more risk.