Posted by Kristine-CA on October 06, 2008 at 08:32:34:
I’m sure there are some here that can speak of what they generally go
for, if there is some generalization to be made. I once bought a non-
performing first for 15% of face value. But that was all I was willing to
pay for it. And I made that same offer every other month for two
years.
IMO forget any generalizations and make an offer that would work for
you. Note purchases are cash intensive and have risks. How much
cash do you want to tie up and for how long, given the profit? There’s
your number.
Posted by Redline on October 05, 2008 at 13:28:29:
I need some advice from anyone who is experienced in buying 1st position notes. I’ve been told they generally go for 45-60% of face value/property value. Is this true? My note experience is limited to mostly defaulted 2nds.
A finance company acquired this note a few months ago and they offered it to me. The face value of the note is $278k. The last pmt was made on 11/07. The house is now worth approx $210k. I am in a judicial foreclosure state. A foreclosure has not been filed, but a relief from stay has been granted. Foreclosure here takes anywhere from 8-15 months.
I want to know what my 1st offer should be? They have asked me not to contact the homeowner but my plan would be to tie up the note and speak with the owner to see what I’m dealing with and what my exit strategy will be.
