Finding The True Default Amount??
I dont know if all of you have the same problem or not.
When you go to the sale the trustee tells the default amount.
However, this information i have not been able to find.(Travis co. Tx.) it is not in the public notices. Is it a guess that you have to do based on the original loan amount, year originated and term?
Do that math on the list of 400 and it takes forever, but can be done. Then you get to the sale and find 5 are close but the rest are 10's to 100k+ off !!
what do you do?
(im taking into account 6mos default + attys fees also)
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WheelerDealer,
We may all be in the same boat on this one. I have never been able to get accurate information unless I am buying pre-foreclosure. I am curious as to how you can estimate and be $100k off. I have found numerous fees and penalties tacked on but not to the tune of $100k unless some liens were not discovered.
Regards,
Ed
The only way that you can get accurate figures is from the Lender or the Trustee. Request a breakdown of the principal balance, amount of arrears, legal fees, accrued interest, and late fees.
You will need an authorization signed by the homeowner or they cannot give it to you. This would be a violation of the Privacy Act.
Barbara
All other leins are wiped out so the one i am figuring and talking about is the !st lein. I am not saying that my figures are off they are not. Amoritization is easy. However, when the trustee anounces the default amount it skews the DTV (that should be a new term! Default To Value) i narrow my propertys by trying to figure this amount but to my dissmay i find these people owe much more! Could it be a re-fi ?
Seems im wasting my time looking at a prop that appears to be a 50 - 70% DTV only to find out when i get there it is really a 80 - 90% DTV.
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like PassingThru said,
Pre forlc you get amount owed by having owner sign a release authorisation form. Otherwise the trustee is where to get it.
Also doing atitle search can give you an esitmate on how much they owe minus any of the legal fees that were added.
Wheeler -
When you say "All other leins are wiped out so the one i am figuring and talking about is the 1st lein."
It is my understanding that the 2nd lein can also foreclose, which in a case of that happening, would make you responsible for making the payments on the 1st lein also.
If your state has a redemptiom period, the foreclosing lein doesn't wipe out the other leins unless they forego the redemption period and don't choose to redeem, right?
So if the house is being forclosed on for $100k, there could still be other leins that will try to redeem during the redemption period and wipe out your purchase.
I'm a little shaky on these things, anyone?
To clarify,
Example: 1st 200k
2nd 70k
The owner is behind on 1st so he ends up being forclosed.
now if the house sells for say 200, the 2nd will be out of luck! However usually the 2nd will send someone to the auction to bid on the house to the amount that would cover the 1st and their 2nd mortgage. So they might end up bidding up to 270k or so.
Now in the off chance the 2nd does not send someone, and you bid and you get the house for 200K what happens next is the1st will get their 200k and the 2nd will get ZERO!
If you bid 230, then 2nd gets 30k. rest is wiped out.
Of course that also may depend on your state and if its a redemption state.
So check with an attorny
Hope that helps. [ Edited by zSaint on Date 12/16/2003 ]
no not a redemtion state so all is wiped out.
i know the 2nd can forclose and pick up on the 1st. however for my question i wasnot talking about that case
thanx
So the answer is NO. you have to get it from the trustee and you have to have an autoration letter to get that!!
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