How would one go about buying mortgage notes? Is this a good line of investing? I’m sure you would get the best discount on notes in default, but if I purchased a 2nd for 10% or how ever much it is, does that put me in postion to redeem the home if the owner does not cure it? Also do private investors fund these?
Yes if you buy the note (at least in most states) that will allow you to redeem the property!
Here in Colorado the owner has 75 days to redeem
the second then has 10 days to pay off the first
then the third has 5 days to pay off the first and the second if the second redeemed if not the third only has to pay the first.
then the fourth has 5 days to pay the third second and the first unless the third did not redeem then he only has to pay off the second and the first unless the second and the third did not redeem then you only have to pay the first.
then the fifth lien holder… Ahhhh never mind you get the point LOL