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NPR - Note Purchase Rewrite |
Note Purchase Rewrite Program
Is where investors purchase the note, package the note and give you a new mortgage loan with the loan amount matching the current value of the house!
Example:
NPR Transaction Sample:
Average Home Purchase Between 2004 to 2008: $650,000.00
Borrower’s Financed 90% of the purchase price $585,000.00
Interest Rate 6.50%
Borrowers current Mortgage Balance (including past due) $564,000.00
Property Current Market Value $400,000.00
New Mortgage Balance after NPR $400,000.00
New Mortgage Payment (Principle and Interest) $3,146.80
Principle Reduced (possibility for equity) $185,000.00
Savings on Mortgage Payment per month $550.80
You keep the house with a new loan set around the current value of the house!!!
General Requirements to get the program:
1. Income - no more than 40% housing cost compared to gross income.
2. 1st Mortgage is more than 20% over the value of house.
3. Owner Occupied dwelling 1 - 4 Units (no commercial)
4. Current mortgage loan - not FHA, Freddie or VA
5. Currently behind at least 61 days on mortgage loan.
6. Not in BK or other Legal Proceedings with Lender
7. All liens must be satisfied at escrow by home owner including Insurance / Taxes.
Cost: $2000 - $1650 if approved will be used for 1 month payment and or escrow fees due to existing liens. $595 for any additional liens on property.
Refund: If you do not get the restructure - $1650 - 100% back - $350 processing fee.
Additional details apply on liens please read the contract for details.
Real Cost normally is $350, since the $1650 is put toward the first loan payment if you successfully get the restructure with no liens on property.
This information is an example only to give you an idea of some of the alternative ways avialble to avoid foreclosure.
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