How it worked for a Non-Performing Note Investor
A NY note investor purchased this non-performing second lien for $4,900 with a payoff of $46,000, ten months after we bought it in a pool for $3,450.
The Fair Market Value (FMV) of the property was $175,000 and the senior lien was current with an unpaid principal balance (UPB) of $268,000 and monthly payment of $1110 (PITI).
Rentals in this area are $1300/month. The borrower has a 605 FICO score and the face value of the second lien was $30,000 with a $342/month payment at origination.