Home Buying in Napa>Question Details

Mark, Home Buyer in Napa, CA

Hi-I own the 2nd on a house in my town.We are trying to buy the senior loan right now.Can the bank who is the?

Asked by Mark, Napa, CA Fri Jul 11, 2008

lender of the 1st change the price of the loan or do they stick with whats owed.Thanks

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Mark:

Everything is negotiable when buying and selling paper. Just like when you buy a bond, the price paid will vary based on the terms of the bond. If the first has a favorable interest rate for the lender (ie interest rate higher than current rates) then they will likely want to charge a premium, if unfavorable, you should be able to buy at a discount. Also, if the loan is in default, their first price the bank gives to you will probably be the total amount owed them, including arrearages and collection costs. This is not necessarily their last price.

Remember, it is all negotiable. Make your offer and be prepared to walk away. If you are not prepared to walk away, then be prepared to pay whatever they ask. It truly depends on how invested you are in the final result. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Sat Jul 12, 2008
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