Posted by Mike on January 25, 2010 at 13:46:19:
In Reply to: Buying your mortgage at a discount posted by Erin on January 25, 2010 at 13:03:23:
There's a payoff amount that you can ask for if you want to pay your mortgage off. But they're not going to give you a discount for doing it. Your discount will be saving the interest. Considering that money in the bank is making 1% a year or less, then paying off a mortgage - even at 5% - is still a better way to go.
What would their incentive be exactly to give you a discount? You clearly have the resources to pay your mortgage payments if you can afford to pay off most of your mortgage. So they're not going to go for any loan modification.
Heck, even people with problems aren't having much luck getting their principal knocked down - which is essentially what you're asking them to do. They simply don't do that.
If you really want to use your cash wisely, don't pay off your existing mortgage. Use it to buy a foreclosure or 2.You can get 140k houses for 60k-70k including rehab. There's your discount on your cash right there.
Pay cash for the house(s) and collect the $1100-1200 rent checks every month. Minus the taxes and insurance, you'll still be netting about $700 a month for each one.