Note Buying Advice Needed before Bank Foreclosure

[Anish Patel]

Hi All,  Looking for a little advice on a possible transaction.

Basic Deal Info

1. Bank has issued foreclosure notices on group of investor properties.  Single, Multi and Commercial

2. The deal would be to buy all the notes ahead of the foreclosure and foreclose on the properties ourselves.

3.  All first position leans, Outstanding Balance on the whole portfolio is about 1.5 million

Questions.

1. What type of realistic discount has anyone seen banks accepting.  I'm think of offering 65% of Outstanding Debt

2.  What are some key points I should be looking for or considering in this type of transaction.

[Wayne Brooks]

A discount based on the UPB is irrelevant, unless the balance is way less than the current value.

@Dion DePaoli  has some experience on current discounts to value/value for notes.