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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] You're right—it's a dubious deal Posted by Ward-CA- on May 30, 2002 at 10:38 AM In Reply to: Dubious deal... posted by Alfred, Trainee on May 29, 2002 at 11:51 PM : Ward, : Bene has a 30K, interest only balloon note which is in 2nd position. I can buy it for between 12-15K. The note was originated 9/14/00. Bene has never received one payment. Trustor is a friend of his and it is awkward for the bene. The ballon comes due in another year. Hanmi Bank, the 1st, started foreclosing one month ago. The delinquency date is 1/1/02. Default amount is $10,161 as of 4/24/02. The total remaining balance including just the 1st & 2nd liens is 286K and the FMV is 350K = 64K equity. But there are judgements, IRS lien and property tax liens after the 2nd. It's a nice house in a nice area. : From talking with the bene I learned that the trustor is very stubborn and refuses to sell (wants his daughters to finish school in that district); can't refi because his credit sucks and there is no equity if you count all encumbrances; has had serious business problems and is literally broke; and may be in trouble with the law for illegal business activities. : With this inside information, my extrapolation is that the guy has nothing to lose so will file BK and do everything possible to stay in the house until he is finally carried out by a marshall or some such. I think the bene knows that BK is inevitable and wants to offload the note. : I feel that the BK factor fouls me up totally and precludes my purchasing the note. Purchase and reinstatement alone would cost me 25K and that money could be tied up for years because a BK won't allow me to get cashed out. My requirements are a nice saleable home with good OGE and thus high chance of a sale or refi. This doesn't fit. I don't see how I can make this work for me. What is your take on this? Thanks in advance. =========================== I agree with you that it's borderline. I'd pass and find another. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Bene has a 30K, interest only balloon note which is in 2nd position. I can buy it for between 12-15K. The note was originated 9/14/00. Bene has never received one payment. Trustor is a friend of his and it is awkward for the bene. The ballon comes due in another year. Hanmi Bank, the 1st, started foreclosing one month ago. The delinquency date is 1/1/02. Default amount is $10,161 as of 4/24/02. The total remaining balance including just the 1st & 2nd liens is 286K and the FMV is 350K = 64K equity. But there are judgements, IRS lien and property tax liens after the 2nd. It's a nice house in a nice area. : : From talking with the bene I learned that the trustor is very stubborn and refuses to sell (wants his daughters to finish school in that district); can't refi because his credit sucks and there is no equity if you count all encumbrances; has had serious business problems and is literally broke; and may be in trouble with the law for illegal business activities. : : With this inside information, my extrapolation is that the guy has nothing to lose so will file BK and do everything possible to stay in the house until he is finally carried out by a marshall or some such. I think the bene knows that BK is inevitable and wants to offload the note. : : I feel that the BK factor fouls me up totally and precludes my purchasing the note. Purchase and reinstatement alone would cost me 25K and that money could be tied up for years because a BK won't allow me to get cashed out. My requirements are a nice saleable home with good OGE and thus high chance of a sale or refi. This doesn't fit. I don't see how I can make this work for me. What is your take on this? Thanks in advance. : =========================== : I agree with you that it's borderline. I'd pass and find another. 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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