Hello everybody! I am reviewing Pennsylvania foreclosure law after my attorney asked me to provide the total amount I have spent on foreclosure-related work, and I would value practical input from those with real execution experience. My attorney confirmed that she follows the Fannie Mae allowable fee framework (she shared the schedule with me) and that, in practice, firms bill fees and costs after they are incurred. That framework appears operationally standard, but I am trying to reconcile it with Pennsylvania statutory limitations on recoverability. Under Pennsylvania law: - Act 6, Section 406 limits recovery to reasonable and actually incurred attorney’s fees after commencement of foreclosure or other legal action, and explicitly restricts fees incurred prior to or during the 30-day Act 6 notice period. https://www.legis.state.pa.us/WU01/LI/LI/US/HTM/1974/0/0006..HTM - 68 Pa.C.S. § 2311 similarly distinguishes between pre-commencement and post-commencement legal fees and limits what can be charged/collected prior to filing. https://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/68/00.023.011.000..HTM My factual situation: I have already incurred and paid the following foreclosure-related expenses: Pre-complaint / pre-foreclosure stage: - Title search / title review (legal due diligence) - Demand letter + statutory mailing - Compliance / document preparation (FDCPA-type itemization work) Post-complaint / litigation stage: - Filing fee (complaint) - Attorney fee tied to complaint / initiation of foreclosure action Additionally, I have separate legal fees paid to foreclosure counsel after the case progressed further. At my attorney’s request, I initially provided the full aggregated amount of all foreclosure-related payments as part of the payoff / damages discussion. The issue I am now reassessing: Educational materials in the NPN space often state that “all reasonable foreclosure-related expenses” can be recovered from the borrower or sale proceeds.

A few months ago we heard from Gerald Lemoine on one of Mastermind Expert Session calls about his outreach strategy for sourcing off-market mortgage notes. He showed how he has a ~5% success rate because of follow-ups. So I wanted to share two little stories to drive home the importance of following up with your sellers. I get calls, texts & letters all the time from wholesalers that want to get my properties under contract. 99% of the time, I ignore them but there are 2 times over the last decade that I have responded and it was all because of timing (I became a "motivated seller" and literally the first person to contact me got the deal). Story 1: A partner and I acquired a duplex in Reading, PA for $30k (he had bought a non-performing mortgage note secured to the property for <$10k and foreclosed, taking back the deed to the property - then the two of us bought it from his other entity). It was pretty good for a few years, we did a little rehab on one of the units and were bringing in ~$2k per month from the building. But eventually both of our core businesses started to take off and we didn't spend enough time managing the rental. Eventually some maintenance issues were the last straw and we were both ready to call it quits. At this perfect timing, a wholesaler called me up and offered $80k for the property. It was slightly under market but it was EASY & FAST - we took the deal (and now the property is worth over $150k but I'm glad to be rid of it!) Story 2: I own a mixed-use quadplex about an hour a way from where I live. I used to live in the town and it was fun to have a coin-operated laundromat on the first floor that I managed myself. Eventually I moved out of town, had kids and it became a big hassle. Previously I would occasionally get letters or calls from people who wanted to buy the business (not the building, just the laundromat + equipment) and I would ignore them. But finally, after another "motivated seller moment" I started to take these inquiries seriously. Now I'm negotiating a sale of the business with two prospects - all because they had the right timing on their follow-up!

📊 RESULTS ARE IN - here are the details & actual metrics for Round 2: Strong engagement and solid reasoning across the board. Most guesses clustered in the 25%–35% of UPB range, reflecting realistic risk pricing given vacancy, back taxes, and package dynamics. Several of you correctly anchored on tax liability + timeline risk as the things most dragging down the value. Actual purchase price: $3,000!! (~10% of the UPB) That comes in below most estimates, reinforcing how cheap you can pick up a small-balance, vacant 1st position loan with negative factors like taxes and long foreclosure timelines (especially as part of a package deal, this trade was a total contract of 10 loans for $79,172.00 sale price - 38% of UPB total) Closest guess (winner): @Dj Olojo with $7,075 (25% of UPB) - correct framework, even if the sale price surprised to the downside. What's ironic about this - DJ was the actual buyer of this NPL back in 2024! Looks like you got a better deal than you remembered 😜 Honorable mentions: - @Iván Terrero 30% of UPB with package logic - @Andrew Bogie - strong equity vs. tax offset analysis - @Nathan Trenery - wisdom-of-the-crowd approach On Today's call, we’ll break down: - Why this asset cleared at $3,000 - Where most investors overestimated value - How buyers think about minimum viable pricing on small-balance seconds - How this compares to pricing if the same asset were performing And for those that missed it - here was the original post: 📣 The Pricing Game — Round 2 🕹️ How to Play 1. Review the deal data below 2. Comment with your best guess for the final sale price 3. Optional: add 1–2 sentences explaining your logic 4. Closest guess wins the round 📂 Today’s Deal: Another REAL Closed Transaction Asset Type: Charged-Off, Non-Performing 1st Mortgage (Senior Lien, NPL)

Our first round of The Pricing Game has concluded! Actual purchase price: $32,211 (~53% of UPB) 🎯 Closest guess (the winner!): @Roman Bassovski , who came within ~$1,200 of the actual sale price. Honorable mentions to: @Jeff Vincent: $30,000 @Smitty Smith: $30,200 (45–50% range) Join Round 2 here 👈 And here is the original post: This is how you train your pricing instincts without risking real money. Your job: guess the final sale price as closely as possible. Most new investors struggle with one thing: “What do notes actually trade for?” This game compresses years of deal exposure into minutes. You'll learn to: • Price notes realistically • Understand how equity actually gets discounted • Start thinking like a buyer How to Play (Simple): 1. Review the deal data below 2. Comment with your best guess for the final sale price 3. Optional: add 1–2 sentences explaining your logic 4. Closest guess wins the round 📂 Today’s Deal: a REAL Closed Transaction Asset Type: Charged-Off, Non-Performing 2nd Mortgage HELOC (Junior Lien, NPL) Sale Date: 12/26/2023 Property Type: Single Family Home Location: Fort Washington, MD 20744 - Prince George’s County Property Fair Market Value: $424,500 1st Mortgage Payoff (Current Senior Lien): $175,608.46 2nd Mortgage (Unpaid Principal Balance, "UPB"): $60,449.90 Status Notes: • Subject asset is a Non-Performing Junior Lien • Charged off by the bank on 11/02/2022 • Subject Junior lien is behind a Current Senior (1st mortgage) • Sold to a member of the Mastermind Accelerator on 12/26/2023 in a package of 3 assets What do you think this note actually sold for? Leave your guess down below!

I purchased my first non-performing second-position HELOC in May 2024 through Fixnotes.com.The property is a SFR located in Luzerne County, Pennsylvania. There are two borrowers — a married couple working as handymen. Considering their trade, it was surprising that they couldn’t keep up with such a small loan. When I bought the note, the first mortgage was already in foreclosure by PNC Bank, so I initially assumed the process would take care of itself.The first lien payoff was about $30k, my second lien UPB was roughly $3,6k, and the BPO came in around $100k, showing strong equity in the property. To confirm, I hired someone through Craigslist to take exterior photos — the house looked well maintained, freshly painted, and clearly occupied. The Twist In August 2025, just days before the scheduled sheriff’s sale, the borrowers reinstated their first mortgage.The foreclosure auction was canceled, and suddenly I realized that the statute of limitations for my HELOC would expire in November 2025 — leaving me very little time to act. I started contacting attorneys licensed in Pennsylvania who would handle a small-balance second lien foreclosure.Out of roughly 20 inquiries, only one firm responded — LOGS Legal Group LLP, represented by Samantha Gable (and later by Heather Riloff). After weeks of document review and back-and-forth emails, they agreed to represent my company. Challenges and Lessons English is not my first language, and my accent makes phone conversations difficult — people often misunderstand me.That made direct communication with the borrowers or their attorney nearly impossible.I even tried hiring a Service companies, but they required full servicing rights to the note, which made no sense financially for such a small UPB. In September 2025, I paid the retainer, and the firm started preparing demand letters and (as I think) pre-foreclosure notices. However, instead of filing for foreclosure — which was the only realistic way to preserve my rights before the November 4, 2025 statute of limitations deadline — Attorney Heather Riloff proposed proceeding as a “debt collection” or “breach of contract” action under the promissory note.