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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Im interested in buying a non performing note. There is about

This answer was rated:

I'm interested in buying a non performing note. There is about 14months mortgage payments are differed which is about $33,000. The mortgage lone balance is 300,000. will the 14months mortgage differed payments be added to the lone balance of 300,000 when I purchase the note or the lender only want to sell it to cover the lone balance?

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

How are you today?

Megan C :

The lender should add the deferred mortgage payments to the loan balance. If you purchase a non performing loan, you should get all the payments on the loan

Megan C :

But before you purchase nonperforming loans you need to be sure you understand the foreclosure laws in the state that you are buying the note in.

Megan C :

Further, if it's multi family property, you would need to see how much of the property is leased out and how many tenants are actually paying rent

Megan C :

The seller of the note is only trying to recover the balance of the loan, and they would rather sell the note to a private buyer than go through the hassle of foreclosure.

Megan C :

Do you have any other questions for me today?

Megan C :

A good article about this is found HERE

Customer:

Do you know if possible for me to contact Chase to buy note directly from them? I heard that major banks only sells large volume approximately over 50mill. is this true?

Megan C :

You can certainly contact them, but I am unsure if they sell their notes to independent buyers. It's such a small note.

Customer:

what's the advantage buying note VS buying property at auction?

Megan C :

It's probably a lot easier to just buy the property at auction

Megan C :

because you don't have to deal with the headache of foreclosure

Customer:

is there a way to purchase properties directly from a bank before the properties get foreclosed? or only way is to buy the note?

Megan C :

You can't purchase the property from a bank, until it's foreclosed

Megan C :

The only thing you can do pre-foreclosure is buy the note

Customer:

thank you, XXXXX XXXXX now.

Megan C :

You're welcome

Megan C and 2 other Finance Specialists are ready to help you
Thanks for your positive rating. Please come back and visit me any time you have a tax, finance, or social security question. It was a pleasure working with you today.
Customer: replied 3 years ago.

Okay, thanks

Customer: replied 3 years ago.

There is a home selling at auction with $100,000 judgment lien attached. If I purchase this home at auction, will this judgment lien get removed before I get the home or will follow with it?

Customer: replied 3 years ago.

There is a home selling at auction with $100,000 judgment lien attached and the mortgage lone balance is 300,000. If I purchase this home at auction for 300,000 which only cover the mortgage lone balance, will this judgment lien get removed before I get the home or will follow with it?

Thank you for your follow up. The $100,000 judgment lien will follow with the house. That is one of the risks of purchasing a home at auction that is foreclosed.

Please let me know if you need anything additional. If not, please rate this response as excellent so that I may receive further credit for assisting you today.
Megan C and 2 other Finance Specialists are ready to help you