All Forum Posts by: Tricia Haggard

Thank you everyone. This information was extremely helpful!

Notes without equity

Bill,

I do my due diligence with every note I buy, also the sellers I buy from guarantee their lien position. I am just trying to get a better understanding of reading the BK documents on Pacer. Basically, what I should be looking for.

Many times note are sold during the BK process and some you buy and the borrower declares bankruptcy, my goal is to protect my position in all cases. A lien could be valid today and gone tomorrow.

For example, you have two notes to purchase, both in bankruptcy. What makes the one better than the other? Is it a crap shoot?

Thanks, that makes sense.

Dion,

I really appreciate your knowledge and expertise on this topic. I have chosen to have a servicer for my notes.

Do you have any suggestions for a good servicing company?

Thank you

Thanks for the response, I definately needed some claification on the subject.

I currently invest in non-performing notes (seconds). I attempt to get the borrower back on track using a variety of work-outs that benefit both the borrower and me.

I use FCI to service the loans once they become performing. Recently, I spoke with FCI and they said many large companies and self-servicers have stopped servicing their NPN's due to new laws as of January 2014.

My question is what new laws would apply to a npn investor? Should I begin letting FCI do full servicing and collections on my npn notes to be safe?

Any advice is appreciated!

I am referring to a NPN in the second lien position. I am aware that sometimes in a bankruptcy case a second lien gets stripped of title.

What documents or verbiage should I be looking for in the bk case files to know whether the lien is still valid or not?

Hope this helped a little.

I understand you can find legal documents on Pacer for bankruptcy cases. If I were on Pacer, will I be able to see if a second lien was stripped? If so, is there certain verbiage or documents I should be looking for to be able to tell if a lien is valid or not?

Thanks in advance for your help!

Andrew,

I've lived in Kanakakee County my whole life. In my opinion, a duplex for 45k in Kankakee is not a great deal.

Do yourself a favor and look at housing prices in the area and comparables. Also, drive by the property. I think in doing this you will answer a lot of your own questions.

While everyone has their own opinions, you could not pay me to buy in Kankakee.

If I was in your position, I would run, not walk, from this property.