Indianapolis Non- Performing 2nd Note
Property Value: $99,000 to $109,000
Borrower Lives in the House and is Current on the 1st Mortgage.
Borrower Owes $67,600 on 1st
Unpaid Principle Balance: $17,275.02
Arrears (Interest): $12,137.50
Late Charges: $1,104.00
Loan Modified to accept $5,000 cash toward arrears and have us credit $5,000 to the arrears for a final agreed upon arrears of $3,241.50 to be paid any time between now and note maturity on 05/01/2025. No interest.
Agreement: Principle Balance is $17,275.02, New interest rate is 7.5% and Amortized over 12 years with payments of $182.29 and the borrower is paying the servicers fee.
We paid $4,029.12 for the Note
We paid $2,250.00 in fees to get the note modified and paying
We received $5,000 to bring the note current and we have 144 payments of $182.29 coming in through auto draft through a servicing company that is paid for by the servicer.
Plus at the end of 12 years or before, the borrower still owes $3,241.50
To Date in this case study we have received $5911.45 and spent $6,279.12. So we have $367.67 in this note and will be free and clear by December 2013. Leaving us the remaining a little over 11 years in payments of $182.29 left to come in plus the $3,241.50 arrears.