All Forum Posts by: Arthur Mayer

Thanks @Dave Van Horn. I sent you an email I haven't heard back.

Here is an update according to Passage Peak. (Thanks again for the referral  

@Bob Malecki) 

"I went over the package with Scott and he said per the Credit report- it was charged off with GMAC- PROFIT AND LOSS WRITEOFF. No servicing company will be able to take it . You would have to go to a collection company who can help since it is now considered unsecured sir."

And went on to say. "the credit report says is they charged it off. The lien is still on the property but its not accruing interest anymore. This type if debt should be collected through a debt collection firm not a loan servicer"

Should I just hire a foreclosure attorney or should I look for a debt collection agency?

Thanks for any advice. 

They have an amazing track record.  I've tried to bid on a few notes, but I believed I was outbid or they never got back to me. I wonder if they continue to sell notes? 

Les, from personal experience, have you had a government program pay you to forgive debt from homeowners in those states? 

@Dion DePaoli

Just to add to your point. Do you really feel GMAC the originator of the note would not be able to provide me a pay history on the file if PPR did not have access to one? 

@Dion DePaoli

Thanks for the harsh reality check.  I find this a great learning experience in the business in buying a few notes and getting my hands dirty and making these type of mistakes. I will make sure the next note I buy I account for the pay history and recent credit reports when reviewing a file.  I believe you mention before due diligence is a vital part of the process, and it is something I wish there were more topics on in this section on how people analyze a note and what items they look for before purchasing a note. 

On a positive note, Passage Peak says they can board and service the loan in its current condition.  

As you mention, I highly doubt I will be able to rescind the loan as you mention, to sell the note, a pay history is not required. 

@Paul Birkett

Thanks for the info. I do have a credit report, and that might mean I will have to create my own pay history so a servicer will be able to board my loan. 

Looking at the Allonges it traces back to GMAC/ Partners for Payment relief which is @Dave Van Horn. Maybe he can help me out since I was a former student of his program :)

@Bob Malecki

Beautiful! We've FINALLY been getting rain down here in San Diego which is badly needed. 

Hey fellow investors,

I recently purchased a note from the FCI Exchange, but come to find out there is no pay history, and FCI Services will not service a NPN without a pay history. I attempted contact the previous note holder who also did not have a pay history with the note.

Is there a way to obtain a pay history for a note or do you know of a NPN servicing company who will service without a pay history?

Thanks in advance,

@Dion DePaoli

Thanks for your input. It was not my intention to try to use a bunch of jargon and over complicate the question. I was trying to understand the exit strategies in place with delinquent taxes. I understand delinquent taxes are not liens, but I was trying to assure my assumptions that in the event of foreclosure, those delinquent taxes would have to be satisfied in the sale of the property similar to a 1st lien would be satisfied before a 2nd lien would be considered.

Maybe I used the wrong terminology "reinstate," as you  mention, but as a viable strategy, do some investors "advance" the taxes owed contingent on their exit strategy (i.e. hold property for rental purposes). 

This is what I am trying to understand better.  Hope this clarifies the question.  

@Mike Hartzog

Correct. I was wondering if taxes get treated in the analysis the same way you would treat a priority lien, and if they are treated similar in terms of exit strategies and incorporating delinquent taxes to the equity of the property in the event you have to exit through the property. 

Hi guys, I was hoping at add a few notes to my LLC, and I had a quick question on Delinquent Property taxes on a note. In terms of analysis/due dilligence, do you account the delinquent taxes in your CLTV when analyzing notes since you will most likely be exiting through the property?

Second, do you ever reinstate delinquent taxes on the property? Also, is it possible to modify a payment plan for the delinquent taxes?

Thanks for your input