All Forum Posts by: Sandy Uhlmann

I was considering purchasing a NP note in Kansas.  Do you need a license to buy or sell residential mortgage notes in Kansas?  I plan to have a servicer if that makes any difference.

Welcome to BP!  

Columbia does have a REI, I believe it is called PREIA when you look it up on meetup. Be sure to come to a meeting and meet fellow investors like yourself. There are other BPers from Mid MO. Be sure to connect with Ron Rowe also.

Good Luck and Welcome to the world of real estate.

I will be there and I am looking forward to meeting you all.  I will plan on looking for fellow BPers at the reception and afterward. 

See you all then!

Sandy

I am attending the NoteExpo next month (November) in Dallas.  I was wondering if any other BPers were planning to attend?  If so, I would be great to be able to get together to say Hi and talk notes.

@Joshua Andrews

That was incredibly helpful.  Thank you so much!  I had already made a cheat sheet on judicial vs non-judicial states and redemption time lines and cost of foreclosure but beyond that and the price of the note, I really did not know what loans to knock out off the bat.  (doesn't help that I'm an excel idiot so moving categories around and placing the important ones side by side isn't an option at this point)  

Thanks too for sharing some price points too.  Us newbies don't really know what a good price is for a note until we get more experience under our belts.  This is especially true since we are still learning of places/people to buy notes from so our choices are limited and we may be paying a premium without really knowing it.

Thank you for pointing out that you actually check PACER, call to confirm the status of the first, and even do an occupancy check all before you bid on the loan.  (rather than relying on what the note seller reports say)  I wouldn't have even thought of checking the occupancy of the house before I purchased the loan.  I guess a little money spent ahead of time can save you a lot down the road.  Do you use a PI for this or NCI?

It just seems to me that this would be a very risky purchase.  Aside from the equity position and maybe looking at the credit report, I'm not sure how to do the due diligence to determine if the first is going to do a loan mod or whatever it needs to do to rise above the foreclosure.  Additionally, it seems risky to hope that if the first forecloses, you might come out with some cash at the foreclosure sale.  Once it goes through the FC sale, aren't all the junior liens wiped out?

@Patrick Desjardins @Paul Birkett

Thanks for the input.  That tape was recently released from PPR.  That was the first time I had seen so many seconds being sold behind firsts that were in foreclosure.  I assumed that there must be a niche somewhere.  I guess if you could gather some info from somewhere so you KNEW that the first was being worked out then it would be well worth your while but otherwise, it seems like a huge gamble.

It seems that I can't even manage to spell correctly today!  That should have been "foreclosure" LOL!

I am a note newbie who was reviewing a recently released tape of non-performing seconds.  I noticed that with this tape, there was very few that were behind performing firsts and nearly half of them listed the first as in foreclosure.  Approx another half listed the senior as not recording on credit or outdated.  Obviously, these loans were very inexpensive but other than that, I am having a hard time understanding the advantage to purchasing a NP second if the senior loan is listed as under foreclosure.  Can anyone shed some insight into this?  Do these get purchased just in the hope that the first gets reinstated or does a loan mod?

As a note newbie, the entire process of going through non-performing tapes seems a bit overwhelming.  I was wondering if anyone has advice on how they do their preliminary process in order to rule out some of the notes before the real in-depth due diligence starts?  I realize that this may vary depending on if you invest in NP firsts vs NP seconds.   Is there a priority system/ranking system that you like to use?  Which factors do you find most important? What is your favorite notes to buy and why?  

Some of the factors that I can identify off the top of my head include:

-Price of the Note

-Judicial vs Nonjudicial state

-Redemption Period

-Price of loan vs UPB

-Time to foreclosure

-Typical cost of foreclosure in that state

-Hardest Hit funds available?

-BK vs no BK

-Status of first (if you are purchasing NP seconds)

-Equity vs No Equity

-Credit score of borrower

Are there any of the above that you would not consider at all?

Thanks again for any input!