Advice needed - NPN Note under Chapter 13 bankruptcy

[Rushabh Sheth]

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?

Thanks in advance for your advice.