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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Going over Junior Bene Buyout strategy.. Posted by Ward-CA- on October 31, 2003 at 10:19 PM In Reply to: Junior Bene's posted by Magic David on October 31, 2003 at 1:33 AM : Ward, : Long time no talk. I hope all is well with you. I just blew the dust off the Junior Bene Buyout portion of your manual. I had some cryptic notes about the right of reinstatement in cases of no equity vs lots of equity. Am I understanding correctly that as the new holder of the junior bene that you might wait to reinstate the first in cases where there's a lot of equity, yet reinstate early on if there's no equity? Also, in both cases, you would start your own foreclosure by filing an NOD early on since there's no upside to waiting to file your NOD, correct? : Awaiting your admonishment, : Magic Dave -=-=-=-=-=-=-=-=-=-=-=-=- Dave, Boy, you take very good notes! Yes, if the property owner has 25K or more of equity, she’s probably going to be motivated enough to either refinance or resell the property to avoid losing all of her equity. If she takes either action your discounted note is going to be paid off in full. However, if she doesn’t have any equity then she won’t be able to lift a finger to do anything. In that case, there’s nothing to be gained waiting for nothing to happen. So keep your reinstatement amount small by curing the foreclosing 1st as soon as possible and take your foreclosing 2nd all the way to auction. Hope you’re doing well. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Long time no talk. I hope all is well with you. I just blew the dust off the Junior Bene Buyout portion of your manual. I had some cryptic notes about the right of reinstatement in cases of no equity vs lots of equity. Am I understanding correctly that as the new holder of the junior bene that you might wait to reinstate the first in cases where there's a lot of equity, yet reinstate early on if there's no equity? Also, in both cases, you would start your own foreclosure by filing an NOD early on since there's no upside to waiting to file your NOD, correct? : : Awaiting your admonishment, : : Magic Dave : : -=-=-=-=-=-=-=-=-=-=-=-=- : Dave, : Boy, you take very good notes! : Yes, if the property owner has 25K or more of equity, she’s probably going to be motivated enough to either refinance or resell the property to avoid losing all of her equity. If she takes either action your discounted note is going to be paid off in full. : However, if she doesn’t have any equity then she won’t be able to lift a finger to do anything. In that case, there’s nothing to be gained waiting for nothing to happen. So keep your reinstatement amount small by curing the foreclosing 1st as soon as possible and take your foreclosing 2nd all the way to auction. : Hope you’re doing well. : 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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