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 Tucker

Kim Tucker along with her husband Don and son Scott has been buying homes across the Kansas City Metro since 2000. When you need to sell a home, don't have the time or money to go the traditional route, and want to skip the hard parts of cleaning it out, fixing it up, all the marketing, inspections, and waiting, we have the easy button. Give us a call and see how we can help. We buy across the Kansas City Metro area, Northland, Eastern Jackson County, Johnson County, and more. Draw a big circle around the major metro area and that is our area. We are also licensed Real Estate Agents, so if you want to compare a cash offer vs listing it as is (we do that, not all Realtors do) or listing it all fixed up, we can walk you through the numbers and help you either way.

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