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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Sell your Jr note after reinstatement Posted by Ward-CA- on April 17, 2002 at 11:06 AM In Reply to: Jr Bene's posted by Frank Mansell on April 15, 2002 at 7:17 PM : I guess the worst that could happen is you are stuck with a note if the first get's re-instated, only problem is my partner doesn't wanna buy notes, he wants the over-bid or the property. : What can I say to this ? : Enjoyed your presentation the other night in H.B. =•=•=•=•=•=•=•=•=•=•= Frank, you don’t have to be stuck with a note if everything is reinstated. A performing note secured by a 2nd deed of trust will sell for about 80% of face value. Here’s an example: Let’s say you buy a 2nd deed of trust and promissory note for 50% of it present balance of $20,000. And instead of getting paid off you received a reinstatement of $2,000 that included all unpaid principal and interest payments. On top of the $2,000 you received additional monies for the 6% late charge fees and your trustee’s fee. $20,000.00 Unpaid balance of secured note 16,000.00 Re-sale price of secured note & trust deed @ 80% of unpaid balance + 2,000.00 Reinstatement fees received — 10,000.00 Your original purchase cost $8,000.00 Your net profit So, if you received $18,000 for a note you originally bought for $10,000, then you made $8,000 on $10,000 which is an 80% return, and it probably took you only 3 months to do. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I guess the worst that could happen is you are stuck with a note if the first get's re-instated, only problem is my partner doesn't wanna buy notes, he wants the over-bid or the property. : : What can I say to this ? : : Enjoyed your presentation the other night in H.B. : =•=•=•=•=•=•=•=•=•=•= : Frank, you don’t have to be stuck with a note if everything is reinstated. A performing note secured by a 2nd deed of trust will sell for about 80% of face value. Here’s an example: : Let’s say you buy a 2nd deed of trust and promissory note for 50% of it present balance of $20,000. And instead of getting paid off you received a reinstatement of $2,000 that included all unpaid principal and interest payments. On top of the $2,000 you received additional monies for the 6% late charge fees and your trustee’s fee. : <TABLE> : <TR> : <TD ALIGN=RIGHT><U>$20,000.00</U></TD> : <TD>Unpaid balance of secured note</TD> : </TR> : <TR> : <TD ALIGN=RIGHT>16,000.00</TD> : <TD>Re-sale price of secured note & trust deed @ 80% of unpaid balance</TD> : </TR> : <TR> : <TD ALIGN=RIGHT>+ 2,000.00</TD> : <TD>Reinstatement fees received</TD> : </TR> : <TR> : <TD ALIGN=RIGHT><U>— 10,000.00</U></TD> : <TD>Your original purchase cost</TD> : </TR> : <TR> : <TD ALIGN=RIGHT>$8,000.00</TD> : <TD>Your net profit</TD> : </TR> : </TABLE> : So, if you received $18,000 for a note you originally bought for $10,000, then you made $8,000 on $10,000 which is an 80% return, and it probably took you only 3 months to do. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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