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Re: NTS published "estimated" payoff amount question
Posted by Treasurecoast on August 23, 2001 at 10:18 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 Here's another option that has some degree of success. Just
make a "clean" $70K offer to the lender after the sale.
Let the lender take all the risk. By "clean" I mean, a quick
closing, "as is" and find your own financing, don't ask the
foreclosed lender to finance it. If it's worth $100K and you
can buy it for $70K, a hard money loan should work just fine.
You'll need to come up with the repair costs yourself. Before the sale, it is often very hard for an outsider (you) to
negotiate with the lender. It's even hard for the mortgagor
(borrower) to negotiate if the "steps" sale is soon. You'll
likely have to deal with the lender's attorney and this
usually just "ain't" fun. (In Florida most foreclosures
are litigated by absolute "foreclosure mills", and these
attorneys usually could care less about helping anyone out.) Some caveats after the sale. You'll have to find the location
of the lender's REO Office(now often called "Asset Management").
That's not always easy. Also if you make the offer right away the
file may not even be in REO yet. I have also found out lately,
that often the foreclosing lender is not really the holder of
the mortgage note, but is just accomplishing a "servicing"
function. Probably the best idea is to wait until Title is
conveyed, then mail the offer to the lender's attorney with a
lender asking the atorney to forward the offer. This doesn't
guarantee that they will do anything. If you send the
correspondence CERTIFIED MAIL - RETURN RECEIPT REQUEST it is
a litle more intimidating. Best of luck.
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