Case Study: Non Performing 2nd Note in Indianapolis

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

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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.

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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.

Kim A Tucker

Kim Tucker along with her husband Don and son Scott make up the core kcmoHomeBuyer Team that has been buying homes across the Kansas City Metro since 2000.

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