Updated almost 4 years ago on . Most recent reply
Latest Trend (Mistakes) To Flush Out Uneducated Note Investors
OK, I am known to go on rants - but I have been told I add value by keeping it real and letting people know what I see going on in the note space. A recent trend I am seeing is sellers posting notes with a Total Payoff NOT being what the current amount due to the lender to satisfy the loan is, BUT they are taking the total number of remaining payments x the monthly P&I payment.
For example a $100,000 loan that was 6% and $600/month. Lets say it has a UPB of $50k and 150 payments left. The seller will list the total payoff at $75,000 even though the loan is current and the total payoff = UPB which is $50k. DO NOT FALL FOR THIS TRICK. It is an uneducated note investor or an unethical one.
- Chris Seveney
Most Popular Reply
That's crazy! I would never think of doing that for a loan that I was trying to sell and it would really lower my trust in a seller that was trying to do that to me. Another reminder to not take good relationships for granted and why it's so important for buyers and sellers to treat each other right to develop a good relationship.