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


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.

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.

Looking For Investment Properties?

Fill out the form below to join our "Preferred Property Buyers" list and for local real estate updates too!

Enter Your Information Below To Get Immediate Access

... to our HANDYMAN specials. *These may or may not be listed on MLS. Available properties on the next page.
  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *