All Forum Posts by: Gabe K.

@Bob E. Thanks, Bob.  That sounds like a good plan. Just defer all the arrears? If I recap I'd have to lower the rate.

@Jesse T. You nailed it, a condo right in the city.

@Bill Gulley Hi Bill, I use a licensed servicer to do everything: borrower communication, forbearance, loan mod, etc. I do own these notes as a business in an LLC but I rarely ever talk to the borrowers myself.

@Dion DePaoli Thanks, Dion. I'm having the servicer get some updated financials. UPB = 75k, arrears = 26k, which I am not writing down because they have equity.

@Bob E. Hi Bob, my servicer said they can forbear but they are horrible and I have transferred all my notes to a different one.  I might transfer this one also.

Everyone, how do you structure it so they must refi in a year or 2?

@Jesse T. Hi Jesse, It's in DC. Rentals are around 900-100 so after tax and hoa I don't think he'll be cash flow positive for a while.

@Mike Hartzog @Andreas Mirza   

@Wendell De Guzman We are going with 85k prin, 9.5%, 30 yr, 715/mo pmt. That's an IRR of 28%.

Notes fans,

I am holding NPN on a nice house in a great neighborhood (not that it matters all the time) where the borrower has equity. Info:

MV: $125k

Prin + arrears = $103k

Rate: 9.90%

Pmt: $765/mo.  Taxes paid.

Borrower had several hardships and says she can start making her regular payment again.  I am getting her financials but I believe her for now.  I even received several of her monthly payments that were in suspense as the previous lender wouldn't accept them. Also, she is in KY and is applying for HHF.  

My goal is to get her current and then have her refi into a lower rate loan.  Would you just forbear and then defer the arrears until she refis? How would you structure it?

@Mike Hartzog @Andy Mirza You guys are awesome, thanks for the help. I am giving the borrowers 2 mod options after the forbearance, both of which involve erasing at least half of the principle and would give me a 30+ IRR. I'll keep you updated.

p.s.- I am posting another mod question now

@Wendell De Guzman Hi Andreas. Borrower has a lot of emotional equity in the property and wants to keep it as a rental so he wants to start paying now. Foreclosure is near the end so he is motivated.

I own this paper and the borrower made a solid offer to start paying $6000 up front and $700/month.  He has a 6-figure income and can afford it.  Here are the other numbers:

MV = $50k and declining
UPB + arrears = $211k (that is not a typo)
I paid $34k

I think I would want to hold this note as long as possible and just collect the payments. How would you structure the mod and forbearance? Thanks.

While I was writing the letter to the borrower, I listed the note on fciexchange and got a nice chunk of change for it.  Thanks, Guys!

Boyd, you are the man! I will try that