Updated over 15 years ago on . Most recent reply
Need Info on NPN offers
I have two NPN's that I am looking to purchase. Both properties are in the process of foreclosure and I would usually handle these as a short sale. But, in these cases, I believe it would be easier to get the properties via purchasing the notes. So, I need advice on how to go about submitting an offer (i.e. % to offer, based on note).
The first note is a 1st mortgage and the lender has told me the payoff for the loan is $79,900. They are willing to sell the note, but they need to see my offer. The property is a condo worth approximately $59,000-$62,000 and there are past due condo dues in the amount of $3,500. The owner is currently working on a Deed-In-Lieu, so he would be willing to perform a Deed-In-Lieu to me, also. My first question is what else do I need to know about this loan to be able to offer a price? The second, if that is all I need to know, what would be a starting price to offer, and what should be the maximum price?
The next note is a 2nd mortgage. The homeowner owes $500,000 on the 2nd. The property is worth $630,000-$640,000. The homeowner is in foreclosure, but is willing to sell as a Sub-2, if we can purchase the 2nd mortgage. We have not spoken to the lender, so I do not know whether the 2nd is for sale on this property or not, but if so, what would be a valid price to offer? The 2nd lender is not going to buy out the 1st mortgage and then foreclose, so they will be pretty much screwed, if the house is foreclosed on.
Any help would be greatly appreciated.