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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Yep, it's all in the details... Posted by Ward-CA- on April 10, 2003 at 10:20 PM In Reply to: About that junior benny buy-out... posted by Masked Investor on April 10, 2003 at 7:06 PM : Ward, : I heard you speak on Tuesday at REIC. Your talk was the best one in the last 11 months. The guy 12 months ago was way better, but that was then, and this is now. And now I have a quick question about the junior benny buy-out. : You said that if one manages to get a discount on a junior lien, the first action would be to reinstate the foreclosing senior lien. Why is that necessary? : Assuming that you purchased right, and there’s plenty of equity in the property, the overbid at auction will net you more if you don’t cure the senior. Sure the senior note will have about 4 months more of penalties, but if the senior is cured, and you then start your own foreclosure, you’ll have the additional cost of the foreclosure legal work. Now of course that will be paid for by the eventual high bidder at auction, but since that presumes a high bidder over bidding, then there was no need to bring your own action anyway. : I can see the benefit of curing the first if there is no overbid of the first & your cost of acquiring the junior lien, in that case you’d have to come up with the foreclosing senior lien’s opening bid to protect your interest, but again, if you’ve done your homework the bid should be enough to cover the senior opening bid plus your assignment of lien costs. : What am I missing? : Just kidding about the better speaker 12 months ago. He was actually there only 4 months ago. Or am I confusing the real estate club with that bar mitzvah??? : : Thanks! =•=•=•=•=•=•=•=•=•=•=•= No, I didn’t say the first action is to reinstate. Buy the recording for that night (see our store) and you’ll agree that what I said was that if the owner has no equity then reinstate the senior foreclosing lien right away. Why? Because reinstating early is cheaper than reinstating later. You’ll need to reinstate to cancel the foreclosing 1st since it will go to its foreclosure sale before yours can since it was started earlier than your foreclosure action. Since there’s really no guarantee of an overbid at the foreclosure of the 1st, it’s better to be safe than sorry and cure the 1st if the owner hasn’t cured the delinquency by the time the NOTS (Notice of Trustee’s Sale) is recorded. What you’re missing is this, play the safest bet and you'll win more over the long run. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : I heard you speak on Tuesday at REIC. Your talk was the best one in the last 11 months. The guy 12 months ago was way better, but that was then, and this is now. And now I have a quick question about the junior benny buy-out. : : You said that if one manages to get a discount on a junior lien, the first action would be to reinstate the foreclosing senior lien. Why is that necessary? : : Assuming that you purchased right, and there’s plenty of equity in the property, the overbid at auction will net you more if you don’t cure the senior. Sure the senior note will have about 4 months more of penalties, but if the senior is cured, and you then start your own foreclosure, you’ll have the additional cost of the foreclosure legal work. Now of course that will be paid for by the eventual high bidder at auction, but since that presumes a high bidder over bidding, then there was no need to bring your own action anyway. : : I can see the benefit of curing the first if there is no overbid of the first & your cost of acquiring the junior lien, in that case you’d have to come up with the foreclosing senior lien’s opening bid to protect your interest, but again, if you’ve done your homework the bid should be enough to cover the senior opening bid plus your assignment of lien costs. : : What am I missing? : : Just kidding about the better speaker 12 months ago. He was actually there only 4 months ago. Or am I confusing the real estate club with that bar mitzvah??? : : : : Thanks! : =•=•=•=•=•=•=•=•=•=•=•= : No, I didn’t say the first action is to reinstate. Buy the recording for that night (see our store) and you’ll agree that what I said was that if the owner has no equity then reinstate the senior foreclosing lien right away. Why? Because reinstating early is cheaper than reinstating later. You’ll need to reinstate to cancel the foreclosing 1st since it will go to its foreclosure sale before yours can since it was started earlier than your foreclosure action. : Since there’s really no guarantee of an overbid at the foreclosure of the 1st, it’s better to be safe than sorry and cure the 1st if the owner hasn’t cured the delinquency by the time the NOTS (Notice of Trustee’s Sale) is recorded. : What you’re missing is this, play the safest bet and you'll win more over the long run. 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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