Comments on: How to Buy Defaulted Mortgages – Case Study: Exit Strategy Foreclosure and REO http://www.notebuyingprofits.com/blog/84/how-to-buy-defaulted-mortgages-case-study-exit-strategy-foreclosure-and-reo/ Real-Life, Up-to-Date Training to Profit from Defaulted Mortgages Mon, 20 Jun 2011 02:09:29 -0400 http://wordpress.org/?v=2.8.2 hourly 1 By: notebuyingprofits.com http://www.notebuyingprofits.com/blog/84/how-to-buy-defaulted-mortgages-case-study-exit-strategy-foreclosure-and-reo/comment-page-1/#comment-477 notebuyingprofits.com Mon, 05 Jan 2009 20:38:10 +0000 http://notebuyingprofits.com/blog/?p=84#comment-477 Rosa, let me see if I understand your question properly - you've bought a note and you're looking to refinance and there's a 2nd behind the first that you're buying. Therefore, you're trying to find out whether and how a refi might help you when you've got a 2nd behind you. You have to be careful about refi'ing with 2nds behind you. Obviously they have to get paid off, or partly paid off (depending on what they'll accept) when you're refinancing. So be careful to do your due diligence when you're buying a 1st, and find out what 2nds might be behind you. Does that mean that you should always buy the 2nd as well? No. But be ready to make an offer on the 2nd in case your 1st is non-performing. It's a way to get a good discount on the 2nd. Sometimes, however, the 2nds may play hard to get, and want to retain their ability to pursue the borrower for a deficiency judgment, and won't sell their note to you. There's a strategy to deal with this - I give you a detailed case study in Step 4, Part 2 - the Triple Prong Approach on a Winona, Minnesota property, if you want the insight on how to handle this type of case. Rosa, let me see if I understand your question properly – you’ve bought a note and you’re looking to refinance and there’s a 2nd behind the first that you’re buying. Therefore, you’re trying to find out whether and how a refi might help you when you’ve got a 2nd behind you.

You have to be careful about refi’ing with 2nds behind you. Obviously they have to get paid off, or partly paid off (depending on what they’ll accept) when you’re refinancing. So be careful to do your due diligence when you’re buying a 1st, and find out what 2nds might be behind you. Does that mean that you should always buy the 2nd as well? No. But be ready to make an offer on the 2nd in case your 1st is non-performing. It’s a way to get a good discount on the 2nd. Sometimes, however, the 2nds may play hard to get, and want to retain their ability to pursue the borrower for a deficiency judgment, and won’t sell their note to you.

There’s a strategy to deal with this – I give you a detailed case study in Step 4, Part 2 – the Triple Prong Approach on a Winona, Minnesota property, if you want the insight on how to handle this type of case.

]]> By: Rosa http://www.notebuyingprofits.com/blog/84/how-to-buy-defaulted-mortgages-case-study-exit-strategy-foreclosure-and-reo/comment-page-1/#comment-354 Rosa Wed, 03 Dec 2008 23:01:47 +0000 http://notebuyingprofits.com/blog/?p=84#comment-354 Dean, thank you for the great info but on this case I do have one question I hope you can help me understand, if you buy the first at a discount and then refi at 65%ltv base on $300k fmv but the note is what happens to the second? Should one have the note on the second first before this type of refi? I hope you can help Thanks Dean, thank you for the great info but on this case I do have one question I hope you can help me understand, if you buy the first at a discount and then refi at 65%ltv base on $300k fmv but the note is what happens to the second?
Should one have the note on the second first before this type of refi?

I hope you can help
Thanks

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