All:
In Calif, I am interested in a property that the Senior loan is foreclosing. I want to approach the Junior loan/lien holder with an offer to buy his note, and bring the Senior loan current.
Short of talking to the Borrower, how can I determine the amount required to bring the Senior loan current?
I have tried talking with the Lender, but as I am not the Borrower nor the Junior lender they will not tlak to me.
Suggestions?
Talk to the Borrower. You need an authorization to release information signed by the HO before the bank will talk to you. You can call the 2nd lien holder and inform them that the senior lien holder will only allow them 1k. This part is only hearsay as i havent work ss with 2 lenders yet!!! WHen you get them to sign off that they are paid off, you should be able to then approach the first lender and find out if they would discount their note as well.
steve
outlookguy - you should be able to estimate the amount of the senior reinstatement based on the amounts stated in the notice of default or notice of trustee’s sale (depending on stage of foreclosure). The NOD will state the delinquency as of a given date. You can extrapolate additional amounts by estimating the monthly P&I based on the loan date, prevailing interest rates at that time, loan amount, etc.
That should get you close enough to know whether you want to do the deal. Then if you buy the second you can contact the senior, request reinstatement figures and start your own foreclosure.