Discount with Beneficial/HFC - Posted by Barry (FL)

import · April 10, 2004, 12:07am

Posted by Barry (FL) on April 10, 2004 at 19:19:29:

Citi, less than 30 days.

import · April 10, 2004, 12:07am

Posted by Barry (FL) on April 10, 2004 at 24:07:52:

Anyone dealt with Beneficial/HFC discounting a non performing note?

Let me know, I have a couple of questions, if you wouldn’t mind.

Thanks,
Barry (FL)

import · April 10, 2004, 9:17am

Re: Discount with Beneficial/HFC - Posted by Carl CA

Posted by Carl CA on April 10, 2004 at 09:17:05:

It was a 2nd TD about six years ago, but I’ll give it a shot if it helps.

Carl

import · April 10, 2004, 12:22pm

Re: Discount with Beneficial/HFC - Posted by Barry (FL)

Posted by Barry (FL) on April 10, 2004 at 12:22:36:

This is actually an equity line of credit. The house has been listed for the past 6 months at 149k and it would probably be worth it if it wasn’t on the street it is. His house and the house next door are the best on the block. Other houses nearby are 60’s rancher and mobile homes on lots. That’s the problem.

He took out the equity line with his ex one week before she filed on him. He’s never made a payment since 9/03. Thie first, Chase 113k, is foreclosing and the appraisal that Beneficial used for the line is rediculously high at 165K.

If I could get them out for a grand on their 20k equity line there’s a deal here.

Any thoughts would be appreciated.

Thanks,
Barry (FL)

import · April 10, 2004, 12:05pm

Re: Discount with Beneficial/HFC - Posted by JD

Posted by JD on April 10, 2004 at 12:05:28:

They will consider a discounted sale or payoff. But, they will drag their feet for a few weeks, and they almost always want more than any investor will pay. I am 0 for 4 with them. My record search indicates that they have only assigned one DOT in my County to any investor in the past 5 years.

import · April 10, 2004, 1:10pm

Re: Discount with Beneficial/HFC - Posted by JD

Posted by JD on April 10, 2004 at 13:10:53:

an offer to a bank to accept a $1000 payoff on a $20,000 mortgage will not even get read unless maybe the there is a foreclosure sale in a week, and probably not even then. Only in seminar land.

import · April 10, 2004, 12:57pm

Re: Discount with Beneficial/HFC - Posted by Carl CA

Posted by Carl CA on April 10, 2004 at 12:57:34:

I got HFC to discount a $39,000 2nd down to $7000, but they were unwilling to waive the deficiency judgement against the seller. I didn’t really care, since the seller was a jerk. He ended up filing BK shortly after getting out from underneath the house. Net effect was the same. The whole process took two months from when I got involved.

It’s not five cents on the dollar like you’re talking about, and they fought like hell. I didn’t think it was going to work several times. Didn’t give up though. I knew they would have probably gotten nothing if they turned me down.

Best of luck.

Carl

import · April 10, 2004, 12:26pm

Re: Discount with Beneficial/HFC - Posted by Barry (FL)

Posted by Barry (FL) on April 10, 2004 at 12:26:49:

Hey JD, thanks for the response. If you could look at my reply to Carl, board won’t allow me to make the same post twice, and comment I’d greatly apprciate your thoughts.

Thanks,
Barry (FL)

import · April 13, 2004, 10:22am

Re: Discount with Beneficial/HFC - Posted by Blane (MI)

Posted by Blane (MI) on April 13, 2004 at 10:22:47:

I got one bank to accept $2000 on a $28000 2nd before the sale, and on another deal got one to take $4000 on a $32000 2nd during the redemption period. It doesn’t happen often, but it happens.

Blane

import · April 10, 2004, 2:32pm

Re: Discount with Beneficial/HFC - Posted by Barry (FL)

Posted by Barry (FL) on April 10, 2004 at 14:32:24:

I’ve done it before! This is where I always start with seconds.

import · April 10, 2004, 2:31pm

Re: Discount with Beneficial/HFC - Posted by Barry (FL)

Posted by Barry (FL) on April 10, 2004 at 14:31:09:

Thanks Carl,

Even .18 on the dollar would make it worthwhile.
How many counters did you have to make? Where did you start the negotiations at? Did you send them the usual ss package?

This house is in prety good shape, just over encumbered. I can always find enough repairs to prove at least 10k.

Any insight into their mindset would be greatly appreciated.

Thnaks,
Barry (FL)

import · April 10, 2004, 5:34pm

Re: Discount with Beneficial/HFC - Posted by JD

Posted by JD on April 10, 2004 at 17:34:59:

Which Bank? How far from foreclosure sale was it?

import · April 10, 2004, 5:28pm

Re: Discount with Beneficial/HFC - Posted by Carl CA

Posted by Carl CA on April 10, 2004 at 17:28:55:

Actually, it was reasonably painless for me. I had an absolute bulldog of an RE agent at the time. She would call them two or three times A DAY, for weeks. Yes, we just put together a standard SS package. We started at $7000 and never budged. The seller hadn’t paid the note in months, and the holder of the first wanted the property back. There was enough equity in it for them, so they didn’t care if the 2nd got nothing, they were ready to take it back, they didn’t budge a bit either. As HFC saw the clock ticking down, they blinked first. They actually waited until the day before the notice was going to be posted on the front door, then they caved in. I had to drive at 90mph to the title company to deposit the money before they closed at 5pm. Phew!

All that, and the house was a piece of crap too. Then the real work began. Got it for $150,000 six years ago, worth about $500,000 today.