Banks generally want to see some margin of equity to mitigate the risk of making a loan. The bank will give you 80% of the value of your primary residence in a refinance to insure that there is some safety margin against a loss if you default and they have to foreclose.
If the bank gives you more than the collateral is worth, what is to stop you from just taking the money and running ?
I doubt very seriously you will find a lender willing to take such a loan risk.
At the Sheriff Sale, you are buying the property, not the note. There is no problem with ethics to inquire or determine the price the Plaintiff will ask at the sale.
But you WILL have to outbid other investors to buy the property. Many, many games can be played to discourage other investors, however. NONE of which can be detailed here!
[addsig]
FHA loans are insured for the full balance of the loan. In the normal course of events, the lender that holds the note would file a claim with the mortgage insurer once the note went into default.
The insurance claim would be settled after the foreclosure sale. If the property does not sell at the foreclosure sale, the lender can assign the note to HUD and take the insurance settlement. Once the foreclosed note is assigned to HUD, HUD has title to the property.
If the property sells at the foreclosure sale, the winning bidder is buying title to the property, not buying the note. The lender will release the lien on the property in full satisfaction of their note.
Banks generally want to see some margin of equity to mitigate the risk of making a loan. The bank will give you 80% of the value of your primary residence in a refinance to insure that there is some safety margin against a loss if you default and they have to foreclose.
If the bank gives you more than the collateral is worth, what is to stop you from just taking the money and running ?
I doubt very seriously you will find a lender willing to take such a loan risk.
You are about 3 years late.
"...there is a long story attached as to why this is a must have note for me." To clarify, you must have the note, not the property, right?
At the Sheriff Sale, you are buying the property, not the note. There is no problem with ethics to inquire or determine the price the Plaintiff will ask at the sale.
But you WILL have to outbid other investors to buy the property. Many, many games can be played to discourage other investors, however. NONE of which can be detailed here!
[addsig]
If HUD has the note now, the bank is out of the picture.
You may still get a chance to buy the property at the foreclosure sale.
banks have no reason to discount notes that are insured.. Other that the say, 20% they are at risk.
FHA loans are insured for the full balance of the loan. In the normal course of events, the lender that holds the note would file a claim with the mortgage insurer once the note went into default.
The insurance claim would be settled after the foreclosure sale. If the property does not sell at the foreclosure sale, the lender can assign the note to HUD and take the insurance settlement. Once the foreclosed note is assigned to HUD, HUD has title to the property.
If the property sells at the foreclosure sale, the winning bidder is buying title to the property, not buying the note. The lender will release the lien on the property in full satisfaction of their note.
Quote:
On 2009-07-23 18:54, cjmazur wrote:
banks have no reason to discount notes that are insured.. Other that the say, 20% they are at risk.
I am sorry, what did you mean to say in the last part of this reply?