All Forum Posts by: Gabe K.

@Davido Davido Hi MR, we used a trustee to handle the FC. You should be able to add most of the FC costs to the loan in all states.  The deed of trust will detail this.  You just get a receipt from the trustee and send it to the loan servicer. No, we would have not lost money in a BK. The only way that could happen is if we didn't have any equity and the borrower completed a chapter 13 and we were stripped.

@Jay Hinrichs Thanks, Jay.  We have a few other 2nds in CA in foreclosure currently.  Hopefully we'll have other exciting results soon.

@Drew McLaren Yes, 1st was performing throughout the process. The owner's agent called us and said they didn't believe we could FC from 2nd position.  The high bidder paid much more than the $80k at trustee sale so the homeowner also received a check after the sale. Correct, 3rd party took title subject to the 1st.

@Bernard Braithwaite Thanks! The trustee added the FC expenses to the opening bid and didn't charge them in advance.

In March of this year we purchased a non-performing 2nd deed of trust in the Silicon Valley area of CA.  We attempted to work out a loan modification with the borrowers but ultimately needed to foreclose as they were unresponsive. We received a full payout of the loan balance following the trustee sale.

Investment Summary - Foreclosure

Santa Clara, CA

• Investment Type: Non-performing 2nd mortgage
• Property Value: $800,000
• 1st Mortgage Balance: $545,000
• 2nd Mortgage Balance: $80,290
• Note Purchase Price: $37,140
• Expenses: $618
• Proceeds from Trustee Sale: $80,290
• Cash-on-Cash Return: $42,532 or 114.5% in 8 months

We believe this outcome is attributable to our extensive research process and detailed due diligence during the note purchase process. Part of this investment was funded by a an IRA account, which means the gains were earned tax deferred.

This is a reperforming 2nd with FULL EQUITY coverage. Please take a look at the attached details and let me know if you have questions.

@Kevin Moen Hi Kevin, this is a bank loan that was originated in 2007 and modded in 2010. The $966.16 is P&I only. We have all the collateral and can answer any other questions you have.  Feel free to email me directly at [email protected].  Thanks.

Looking for a truly passive 6% yield backed by a 1st deed of trust with equity on a SFR in S. CA? We are selling a performing loan from our portfolio so we can redeploy cash, details attached. Please let us know if you have any questions at all.

We have bought 1 only from SMR and now have the borrower in a forbearance to mod agreement.  I have contacted SMR a few times since then but they don't seem to have any product for sale.

@James Wilcox Will do. I can add you to our newsletter so you can see the final numbers, if you would like.

@Michael Rogers Hi Michael, we bought that note from Granite, 2 years ago.