Chris SeveneyPoster
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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.