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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Have to figure it out for yourself. Posted by Ward-CA- on May 25, 2002 at 4:19 PM In Reply to: Have to call lenders? posted by Mark on May 25, 2002 at 9:28 AM : I have searched titles at the County records on properties that I will bid on at the Trustees sale. In the case where the second is foreclosing, I know I would be responsible for the entire balance of the 1st. However, if payments were missed on the 1st and the lender (of 1st) did not file NOD, should I assume there were no missed payments on the 1st? I want to make sure I am as accurate as possible when doing the "Sellers Net" worksheet. Do you always call the lender (of the 1st) to obtain the loan balance or do you estimate it using the monthly payment and interest rate that is on the Trust Deed? Won't the lender normally just give loan balance info to the trustors (and not me)? Also this will add additional time to the process if I have to call all of the lenders. Any help is appreciated. : Thank you, Mark =•=•=•=•=•=•=•=•=•=•= Mark, You have to assume that when someone stops making payments on a trust deed that she has stopped making payments on all of the trust deeds at the same time and has stopped paying on the insurance and property taxes too. Rarely have we been wrong in this assumption. But even so, when it happens we’re OK because it means that we don’t owe as much in back payments as we had figured. We never call the lender on the senior liens since they won’t talk with us when we have no connection or nexus to the property. Also there’s rarely any disclosure of any interest rate on a recorded trust deed. So to figure out the approximate amount owing on the 1st you’d have to use an amortizing calculator like the Hewlett Packard 12-C. Here’s how you do it: 1. You’d plug in the value of 360 in the “n” key. (30 months x 12 = 360) 2. Next go to our interest rate charts on site. Find the interest rate in existence at the time the 1st trust deed was recorded. Divide that rate by 12 and put it into the “i” key. 3. Now find the original loan amount on the recorded trust deed and put it into the “PV” key. 4. Now just click on the “pmt” key and the machine will solve and show what the monthly payment is. 5. Finally, figure how much time (in months) the 1st has been in existence and put it into “n” key. 6. Now just click on the “FV” key and the current loan balance will be shown. Hope this helps. Follow Ups: Re: Have to figure it out for yourself. David 9:57 PM, 05/25/02 (2) Close is the name of the game Ward-CA- 12:50 AM, 05/26/02 (1) Thanks! (nt) David 8:24 AM, 05/27/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I have searched titles at the County records on properties that I will bid on at the Trustees sale. In the case where the second is foreclosing, I know I would be responsible for the entire balance of the 1st. However, if payments were missed on the 1st and the lender (of 1st) did not file NOD, should I assume there were no missed payments on the 1st? I want to make sure I am as accurate as possible when doing the "Sellers Net" worksheet. Do you always call the lender (of the 1st) to obtain the loan balance or do you estimate it using the monthly payment and interest rate that is on the Trust Deed? Won't the lender normally just give loan balance info to the trustors (and not me)? Also this will add additional time to the process if I have to call all of the lenders. Any help is appreciated. : : Thank you, Mark : =•=•=•=•=•=•=•=•=•=•= : Mark, : You have to assume that when someone stops making payments on a trust deed that she has stopped making payments on all of the trust deeds at the same time and has stopped paying on the insurance and property taxes too. Rarely have we been wrong in this assumption. But even so, when it happens we’re OK because it means that we don’t owe as much in back payments as we had figured. : We never call the lender on the senior liens since they won’t talk with us when we have no connection or nexus to the property. Also there’s rarely any disclosure of any interest rate on a recorded trust deed. : So to figure out the approximate amount owing on the 1st you’d have to use an amortizing calculator like the Hewlett Packard 12-C. : Here’s how you do it: : 1. You’d plug in the value of 360 in the “n” key. (30 months x 12 = 360) : 2. Next go to our interest rate charts on site. Find the interest rate in existence at the time the 1st trust deed was recorded. Divide that rate by 12 and put it into the “i” key. : 3. Now find the original loan amount on the recorded trust deed and put it into the “PV” key. : 4. Now just click on the “pmt” key and the machine will solve and show what the monthly payment is. : 5. Finally, figure how much time (in months) the 1st has been in existence and put it into “n” key. : 6. Now just click on the “FV” key and the current loan balance will be shown. : Hope this helps. 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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