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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Figuring how much it'll cost to cure the 1st Posted by Ward-CA- on April 12, 2001 at 9:43 PM In Reply to: Curing the 1st posted by Eric on April 12, 2001 at 9:43 AM Eric, before we become subject to the 1st, either by acquiring the title of the property at the trustee's sale of the 2nd, or by buying out the junior 2nd's beneficial interest prior to any trustee's sale, we calculate the probable reinstatement of the 1st. At this juncture we are just trying to get a close idea of the cash needed to reinstate the 1st in order to help figure out the probable profit we're going to make. To calculate the reinstatement of the 1st you'll need an amortizing calculator, like the Hewlett Packard 12C. First we calculate the probable mortgage payment on the 1st. We do that by: assuming the 1st has a 30 year term and assuming the interest rate of the 1st is the same as what the average interest rates were on the date the 1st was recorded. With those two assumptions keypunched into the HP12C and the beginning balance of the 1st (shows on the recorded 1st trust deed) the calculator will give us a monthly payment amount. Then we look at the recorded Notice of Default (NOD) on the 1st. It tells us the date their delinquency began. So we multiply the monthly payment amount times the number of months it's delinquent and add a 6% late charge penalty. If the 1st started a foreclosure we add $500 more to reimburse the lender's trustee's fees. And if the defaulting homeowner went into bankruptcy then add another $500 to reimburse the 1st for any legal work that might have entailed. And there you are! If you buy the 2nd trust deed you will be recording the assignment of the trust deed to you. Get a certified copy of that recording and send or fax it to the foreclosing trustee of the 1st, proving that you now have a right of reinstatement, which entitles you to directly ask the 1st for the exact amount it takes to reinstate their loan. Once you know the exact amount due ask them to tell you where to take or mail your cashier's check. So there you are!! Follow Ups: Re: Figuring how much it'll cost to cure the 1st mary ellen 5:58 PM, 08/24/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Eric, before we become subject to the 1st, either by acquiring the title of the property at the trustee's sale of the 2nd, or by buying out the junior 2nd's beneficial interest prior to any trustee's sale, we calculate the probable reinstatement of the 1st. At this juncture we are just trying to get a close idea of the cash needed to reinstate the 1st in order to help figure out the probable profit we're going to make. : To calculate the reinstatement of the 1st you'll need an amortizing calculator, like the Hewlett Packard 12C. First we calculate the probable mortgage payment on the 1st. We do that by: assuming the 1st has a 30 year term and assuming the interest rate of the 1st is the same as what the average interest rates were on the date the 1st was recorded. With those two assumptions keypunched into the HP12C and the beginning balance of the 1st (shows on the recorded 1st trust deed) the calculator will give us a monthly payment amount. Then we look at the recorded Notice of Default (NOD) on the 1st. It tells us the date their delinquency began. So we multiply the monthly payment amount times the number of months it's delinquent and add a 6% late charge penalty. If the 1st started a foreclosure we add $500 more to reimburse the lender's trustee's fees. And if the defaulting homeowner went into bankruptcy then add another $500 to reimburse the 1st for any legal work that might have entailed. And there you are! : If you buy the 2nd trust deed you will be recording the assignment of the trust deed to you. Get a certified copy of that recording and send or fax it to the foreclosing trustee of the 1st, proving that you now have a right of reinstatement, which entitles you to directly ask the 1st for the exact amount it takes to reinstate their loan. : Once you know the exact amount due ask them to tell you where to take or mail your cashier's check. : So there you are!! 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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