Anybody purchasing discounted 1st mortgages (pre-foreclosure)

Hello everybody,

I have been thinking about approaching some of the banks on pre-foreclosure houses in an attempt to purchase the first mortgage from them, and wondered if anybody on here had any experience doing this and could offer some insight?

I have heard of others doing this, but do not know anybody personally who has done it. There are probably some webinars/infomercials floating around on it wanting to sell you their limited knowledge for big money :slight_smile:

We have been primarily buying our houses from the trustee auctions, and a few that were listed on the MLS.

Thanks for the input,


Where are you located Scott?

I have researched this question as well and have only found loan portfolios available (rather than individual loans). It doesnโ€™t seem like the banks are set up to sell individual notes. Most of portfolios I have seen are in the $5 million range (outstanding principal balance). There is a site called DebtX (I am a member but otherwise have no affiliation) which auctions off performing and non-performing loan portfolios but you need to register with them and they require proof of funds in advance. It is tailored more towards institutional buyers and syndications. I did see one non-performing portfolio available on that site recently that had a principal balance of $900,000.