All Forum Posts by: Andy Mirza

I've noticed that, too. I only check one other category and not much activity there either. I don't know about the rest of BP. Maybe people are going back to their regular lives more and more and have less time to post here?

@TJ Addison There is an art to bidding and what behavior is acceptable. In general, we'll assume that what the seller has on his tape is the truth. If we prove otherwise then there's a reason to have a conversation about pricing.

For example, if the tape says the property is worth $100k and your BPO comes back at $80k you have reason to ask for a price reduction. (Make sure you verify that your BPO is more accurate than your seller's and be prepared to send it over.) The seller may accept his value over yours in which case you either accept his value or drop the loan from the trade.

Another company that provides DD reports is Phoenix Collateral Advisors. They will also order O&E reports and incorporate the results into their reports.

As far as the normal sequence of events for those that want to know:

1. Agree on price

2. Get your digital copies of all note related documents

3. Order DD, O&E, and BPOs

4. Handle any discrepancies that your DD uncovers: Re-price, accept price as is, or kick the loan

5. Once everything has been cleared, both parties sign loan purchase agreement.

6. Wire purchase money to seller within 24-48 hrs of signing loan purchase agreement. (Don't mess this up!)

7. Seller ships physical collateral files with 1-3 weeks  

We've been in buying mode for the last couple of months after closing our last fund to new investors.

Our experience so far:

Lots of IL, NJ, NY, PA, OH, FL loans for sale - those are in judicial FC states many of which had longer than average foreclosure moratoria or still have them in place. Some of our sellers seem ready to unload these loans that have they've held for a long time just to get them off their books and to reduce their exposure.

On the plus side for us as buyers, a lot of these loans are post judgment and just waiting for FC sales to resume. Also, real estate prices in general are going up, which bodes well for our chances to sell to a 3rd party at sale or to sell our REOs. Some of our sellers are taking note of this and want a lot more for their NPNs that have sale dates a month or two out. They'd rather take their chances at the FC sale because they're getting a lot more than they expect.

Not very many NPNs available in non-judicial FC states. My take is that these have had time to make their way through the system to go to sale while not being replenishing the supply with other NPNs because of forbearance, either GSE or non-GSE.

One seller said that they're expecting to buy 1000 more loans in the next few months. I wonder if it'll actually happen and what it means if it does.

Other viewpoints out there?

Ugh, yes, that statute seems problematic and I do agree that it seems the statue wasn't intended for a situation like yours. My experience has been that BK judges have enormous discretion and I believe that the majority are debtor friendly.

This situation is trustee vs creditor and a lot depends on the judges relationship with the trustee.

Since you are not a big, bad bank but an individual investor, the judge might side with you if your attorney can make a good enough case.

You've definitely learned your lesson the hard way. For others out there: If you're a lender, make sure that the mortgage or deed of trust is recorded ASAP and that you have a copy of the recorded document. It should be part of your standard operating procedures. 

Who filed the Motion to Void the Mortgage, the trustee or the debtor? What did your attorney say about it? Since your mortgage was actually filed before the BK, I wouldn't think it would make a difference. Lots of mortgages have delays in recording but they're still valid.

I agree with the others, the debt should be cancelled for the borrower but your ability to go after the property should still be intact.

@Chad U. We don't do business with SN so no worries there :)

Found out today that FCI will sub service the loan for us. That means that we'll be listed as the buyer and servicer and we'll be responsible for reporting to Fannie. However, FCI will do everything else.

We're looking to buy a loan that requires a Fannie Mae approved servicer. Unfortunately, FCI is not Fannie approved.

I've been told that BSI and SN are.

Most of the other Fannie approved servicers are large companies that won't except single loans.

Anybody know of other smaller Fannie approved servicers?

 

@Sean Dougherty What state is this? I haven't heard of any situations like this in which an owner cannot sell their own property.

In general, if there's equity, the sales transaction goes through like normal. If the property is underwater, you need the lender's approval for a short payoff.

If the owner is in BK, however, he or she would need to get permission from the BK court to sell the property.

I have several loans that had pending foreclosure sale dates pre-COVID that were delayed because of moratoria on foreclosures. As far as I know, those homeowners could have sold their properties during that time if they wanted to.

@Account Closed After doing a little more research, the MMM program is in place in a lot more BK courts, although this is the first time I've seen it. I think Fl was first in 2014 and then other courts in other states have added the program since. Because participation in the program doesn't release a debtor from other obligations of being in BK, I don't think it's a great stall tactic. There are plenty of things a debtor can do to delay the process that doesn't include the work and effort of submitting a full loan mod package like the MMM requires.