Deep Discounts From Banks
A few people have told me that they get banks to discount 50 cents on the dollar. I have done four and the banks have not went down more that 10-15%.
Has anyone gotten these deep discounts? Is it common?
Are these non-performing or performing loans?
Please clarify.
good question
Please help us out a little as you have posted this already at TCI located at http://www.thecreativeinvestor.com/ViewTopic34976-18.html
TCI prefers that you post your questions once and not multiple times, as it will confuse the learning process.
Thanks.
Quote:
On 2004-09-29 17:43, coloradolynn wrote:
A few people have told me that they get banks to discount 50 cents on the dollar. I have done four and the banks have not went down more that 10-15%.
Has anyone gotten these deep discounts? Is it common?
[addsig]
I'm not sure I understand what the difference is between perfoming and non performing loans. If you mean are they in default. then the answer is YES. They are traditional 30 year fixed loans held by GMAC, Wells Fargo,Chase, Ocwen, etc.
Are you trying to buy the note, or are you trying to do a short sale? If a short sale, then anywhere from 40%-60% is common. If you are trying to buy the note, then that is a different animal. Also, it is possible that you are trying to use the wrong acquisition technique. For example, if the FMV of a piece of real estate is 200K, and the mortgage balance is 80K, and it only needs 10K in repairs, then you would be hard pressed to get a deep discount using a short sale. Best to do a Sub2, or straight purchase in that situation.[ Edited by bnorton on Date 10/03/2004 ]