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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: "estimated" payoff amount question Posted by Ward-CA- on August 22, 2001 at 11:12 AM In Reply to: NTS published posted by David on August 22, 2001 at 8:39 AM : 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 =•=•=•=•=•=•=•=•=•=•=•=•= David, you pegged it pretty accurately in your first paragraph. And since there’s no puffery in the figures published in the Notice of Trustee’s Sale there’s no slack to take advantage of. I agree with you that your figures would peg this as a borderline deal. Because you’re not a keeper, you’re flipping properties instead, you’ve got to have that extra margin for sales costs, holding costs, buyer’s cost buydown, etc. So pass on this one and throw your line back in. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : 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 : =•=•=•=•=•=•=•=•=•=•=•=•= : David, you pegged it pretty accurately in your first paragraph. And since there’s no puffery in the figures published in the Notice of Trustee’s Sale there’s no slack to take advantage of. : I agree with you that your figures would peg this as a borderline deal. Because you’re not a keeper, you’re flipping properties instead, you’ve got to have that extra margin for sales costs, holding costs, buyer’s cost buydown, etc. So pass on this one and throw your line back in. 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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