Archive for September, 2011

A RECENT PURCHASE THAT WE MADE

Wednesday, September 14th, 2011

I was sitting at my desk and a call came in on our toll free line from a local loan broker that made a loan to a borrower who purchased a fixer-upper condominium in Foothill Ranch (here in Orange County). I found it unusual that a loan broker was calling me to buy his loan that he just made in January, but I listened to his story.

The loan broker had made several recent loans and one of them went bad, so he had foreclosed on the property and was making repairs and upgrades to it. He needed additional funds to complete the refurbishment of the forclosed property, so he was considering selling this other performing loan he had made in January.

The loan broker had the Note, Trust Deed, the Title Policy insuring the loan, the copies of the recent payments showing a payment history, he had a copy of the Fire Policy, he had the HUD-1 escrow closing statement, he had comps for the property as well has he had a letter from the H.O.A. association confirming that the H.O.A. dues on the condominium were current. In the morning he scaned and e-mailed all those items to me and I then checked with the title company to see that there were no prior assignments of the loan, I also checked with the Orange County Tax Collectors Office website to confirm that the April 2011 tax installment was made, then I got in my car and drove over to the property to see the outside of it and any for sale listings in the neighborhood.

I got back to my office at about noon, I called back the note broker seller and told him that I could pay 91 cents on the dollar for his loan, he said I was close can I do a little better, I went to 92 cents on the dollar and he accepted my offer. He asked how soon could he have his money? I invited him to our offices here in Irvine, he showed up about 1/2 hour later. My assistant prepared his loan transfer paperwork and within an hour we were walking across the street to the bank to buy a cashier’s check.

This is not typical, usually the transaction takes 3-5 days, but since the note seller had everything down to the copies of the payments, as well as all the originals and the property was a short drive away, there is no reason to delay. We don’t “fish” for the funds, also you will get an experienced decision maker when you contact us. If you are thinking about selling your loan and would like top dollar for it, quickly without having wait for somebody “fish” for the money, call, click or fax us your deal and you’ll get great service!