Second Trust Deed Investment

The following is a summary of the property and the borrower for a 2nd Deed of Trust that has been drawn.

Amount of New 2nd Trust Deed: $28,500
Payment: $ 633.97
Amortized over: 60 months
Interest rate: 12%
First payment: May 1, 2010

I will consider 2 Investors that would receive the following:

Minimum Investment Required: $14,250
Payment: $ 316.98

Existing Loan:

Current 1st: $172,000; Original balance: $182,000; Originated: 1991
Arrears: $4,700
Value: $491,000
Loan to value: 35.03%
Combined LTV: 38.90% (with the new 2nd)

Property:

Location: Carlsbad, CA
House: 2 BR/2 BA, 1,400 square feet, built 1950, fair condition
Lot: 1+ acres

Borrower:

Lived in home: 30 years
Occupation: Engineer for radio and television operations
Length of time: 25+ years
Credit Score: 506

Reason for loan:

Client has fallen behind on payments on his two rental properties due to an illness in the family and because there was a long vacancy in one of his rentals. We have tried to negotiate loan modifications on his two rental properties. One is a little upside down and we are listing it for Short Sale now. The other rental has too much equity for a loan modification and is being considered for listing to sell.

There is a lot of equity in the home and this would be considered a safe investment even if the property values in the area would drop another 30%.

For more information contact: Wade at 760-643-4152 or wtompson@ix.netcom.com