1. Please confirm the following CLTV and ACLTV calculation formula – right or not?
CLTV = (1st mortgage current unpaid principle balance + 2nd mortgage current unpaid principle balance + property tax lien) / property appraisal or market value
ACLTV = (1st mortgage current unpaid principle balance + 2nd NPN purchase price) / property appraisal or market value
2. After I purchase the 2nd NPN, do I automatically become the property’s owner right away or after I foreclosure the 2nd NPN and the foreclosure fails?
3. Is it a general rule that only buy the 2nd NPN if the property doesn’t have Property Tax Lien? Is there any exception?
4. You mentioned modification of the 1st mortgage loan. Could you give an example – when (before or after purchasing 2nd NPN) and who (us or property owner) modify the 1st mortgage loan? what is the benefit of it?