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Re: NTS published

Posted by Eric - CA on August 22, 2001 at 10:36 AM

In Reply to: NTS published posted by David on August 22, 2001 at 8:39 AM

As an FYI, the laws vary significantly by state, so please post your location in future posts.
This is what I have learned for this type of situation in CA, and Ward may correct me if I got anything wrong:

If this has not gone to the trustee sale yet, you are perfectly able to purchase the property from the owner at any time before the sale. The owner can then use the proceeds to payoff the lender.
The difference between the "payoff amount" and the amount in the NTS should be minimal. The NTS should include that amount which will make the foreclosing lender whole. It does not make sense for the foreclosing lender to ask for a minimum in excess of the amount they are owed because that excess would go to the owner or be used to payoff other liens. I have only seen the estimate go higher, not lower.

You can certainly find out from the owner exactly how much they need to pay the foreclosure in order to get out from under it, but as stated I think this will be the same as the NTS amount.


: Hello. First time for me, but I am looking at possibly buying a property just prior to a Trustee Sale (to be handled in escrow). I know from the Notice of Trustee Sale that an amount is published (lets say 85) and that this amount is the current "estimate". I also know that the remaining principal left to be paid on the Trust Deed is considerably lower (around 70). I understand there are other costs such as unpaid interest, legal fees etc which have boosted the amount published in the NTS.
: In any case in order to go to the last stage I have asked the current owners to obtain a confirmed payoff amount needed from the lender. To be honest if the estimated amount published in the NTS is accurate, I feel it is a borderline acceptable deal currently offering about a 15% discount to market value. My initial interest was in rehabbing and flipping this property.

: As I have no experience in this situation, my question is might there be a difference in the payoff amount (hopefully lower) that is quoted as per the request of the owner versus the estimated payoff amount that is published in the NTS?
: Also, might I as a possible buyer try to negotiate with the lender for a lower acceptable amount or will they just direct me back to the owner?

: Thank you.
: David




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