- Teleseminar Non-Performing Notes TOMORROW

Published: Wed, 08/20/14

Hi ,
 
Sandor Lau's Exit Strategies When Buying Non-Performing Notes is below.
 
Join Sandor and me on a teleseminar TOMORROW, Thursday, Aug. 21.
He is an expert on investing in defaulted notes, esp. junior liens,
so be sure to join us for this free event!  It starts at:
 
6 p.m. Pacific Time
7 p.m. Mountain
8 p.m. Central
9 p.m. Eastern
 
We'll take your questions live.  When it starts in your time
zone, call 605-562-3140 and when prompted enter the code
794728#
 
This will not work on Magic Jack or other VOIP systems.  It
will work on cell and land lines.
 
Cheers,
 
Bill 
 
W. J. Mencarow
President, The Paper Source, Inc.
 
P.S.  A FREE training video on buying non-performing notes 
by Sandor Lau is at:
ttp://papersourceseminars.com/non-performing-notes-seminar-2014/
 
 
EXIT STRATEGIES WHEN BUYING NON-PERFORMING NOTES

by Sandor Lau
www.StewardshipCapital.com
 
Notes have multiple exit strategies:

  • Create a workout plan with borrower based on an affordable monthly
    • payment amount. This plan also addresses arrearages and late fees.
    The US Treasury Department's Hardest Hit Fund may provide borrowers
    assistance in some states for their monthly payments.
     
  • Offer the borrower a discounted payoff of the lien for less
    • than its face value. Because you purchased the note at such a
    discount, you can afford to offer a discount for a cash payoff.
    Borrowers can use cash on hand, family loans or gifts, or qualified
    retirement accounts. The Hardest Hit Fund may also provide borrowers
    assistance to pay off or refinance.
     
    Outside of subsidized programs, it is unlikely borrowers will be
    able to refinance because their credit is damaged by nonpayment of
    their loan.
     
     
  • If borrower cannot afford to stay in the home or does not wish
    • to, they can deed the property to you, the note owner.  In cases of
    need, you may want to provide a small financial consideration for
    moving assistance. Consideration money is a cheap insurance policy
    that borrowers will leave the home clean and in good condition.
     
    You then own the property if you hold the first lien, and if you
    own the second lien your lien is subject to the first.
     
  • If the borrower cannot afford to stay in the home or does not
    • wish to, they can also do a short sale. If you hold the second lien,
    you then negotiate with the first lien holder who must come to 
    agreement with you on a payoff amount in order to close the sale.
     
  • If the borrower is unwilling to communicate or work with you, you
    • can also foreclose from second position, taking ownership of the
    property subject to the first lien. This is Stewardship Capital's
    last option and not our goal.
     
  • Borrower bankruptcy is not nearly the risk it would appear. It
    • guarantees you will be dealing with professional trustees and
    attorneys who are likely to act rationally rather than emotionally.
    In the case of chapter seven bankruptcy (liquidation), it also wipes
    out unsecured debt, giving the borrower more money to pay his or
    her home loan. In the case of chapter 13 bankruptcy
    (reorganization), it also ensures payments through a trustee on a
    plan from three to five years. If the borrower fails to make
    payments according to the schedule, the note holder can foreclose
    according to the same process after the home has appreciated in
    value. Your lien position can be in jeopardy through bankruptcy but
    there are a number of risk mitigation factors.
     
     
    Sandor Lau of Stewardship Capital (www.stewardshipcapital.com)
    will teach at the Paper Source defaulted notes seminar Nov. 20-22
    in Las Vegas and will be available to sit down with you for a
    complimentary consultation.  Go here or call 800-542-2270 for information.


    And set your calendar alarm for the teleseminar with Sandor
    tomorrow, Thursday!