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
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 doesn’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.