Reply To: Note 第4期 学员问题汇总

[Jian Wu]

1. In judicial foreclosure states, even though we can buy the NPN with a very low ACLTV, since the foreclosure takes a longer time and may be something unexpected happens during the foreclosure in court, under what condition or what causes you to buy the NPN in these states?

2. Regarding the “credit bid”,
(1). The purpose of “credit bid” is a guarantee which makes sure either the foreclosing party (on behalf of NPN holder) can get the full amount of debt that borrower owes or get the property itself. Is my understanding right?
(2). In auction, how does the foreclosing party place “credit bid”? Is it one of the below ways or using other methods?
A. if the foreclosing party puts the opening bid = the full amount of debt that borrower owes, the opening bid has the same function of “credit bid”?
B. can foreclosing party put a normal bid = the full amount of debt that borrower owes, the normal bid has the same function of “credit bid”?
C. can foreclosing party sets up the reserve price = the full amount of debt that borrower owes, the reserve price has the same function of “credit bid”?