Purchasing mortgages in default?
I just got the deed to a house that is in the pre4closure phase worth about $150k. The first and only mortgage is for $103k. I'm calling the bank (Washington Mutual) this week to work on discounting the note. Is there anyone that can give me some tips on process as well as lingo to use and paperwork I might ask for so that I sound like I'm an experienced notebuyer? 
P.S. Bill, I thought it was a 2/1.5 as per the tax records. Turns out to be a 3/2.5.
I suggest read the following:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=171
http://www.thecreativeinvestor.com/ViewTopic771-18.html
If this does not help, let me know and we will walk throught the process.
John Michael
Thanks for the reply. I read through the threads. I am looking to discount the note so that I am the one able to foreclose on the mortgage. I don't think a short sale will work based on the equity position. Also the old owners are halfway across the country. I am looking to contact the bank as a note buyer or as a person who is willing to help out the old owner by buying their mortgage and "collecting future payments, modifying the mortgage, or establishing a forbearance agreement with the homeowner"...
Really, i'll just end up writing myself a payoff at the closing table.
Any note buyers advice?