hello all whats the point in buying non-performing notes??? somebody break this down for me… I understand the deep discount someone will give you for it but what do you do with it???
By non performing notes, I assume you are talking about notes secured by a property (i.e. mortgage notes gone in default.)
Buying notes is a great alternative to short sales - much less paperwork and faster transaction times. I use it as a preferable alternative to short sales - first I find out if the bank sells notes, and if they don’t, I pursue a short sale. It works better with smaller regional banks or portfolio lenders.
The advantages are the same as short sales - buying at a discount and of course you can flip the property, wholesale it or keep it for rental income.
great info thanx im going to look more into this :beer