Well its that time again to dive into NPN’s (non performing notes).
Non Peforming notes were typically reserved for the affluent, hedge funds, or people with connections. The small investor never had access to non performing notes.
As a REO Realtor for the Major Banks, I run across Asset Managers, Hedge Funds, Banks, and Private Sellers who have Nationwide Non Performing Notes for sale.
I don’t mess around with Chains and People who think they have access to something. I only market what My Contacts from the REO industry are giving me. The biggest issue with the Non Performing Notes becoming more available today, is that everyone is trying to broker them to investors/buyers. Sometimes you will find out there are 2,3, or 5+ people involved on the sell side. These become a big issue, waste of time, mess, you name it. Worst part, the buyer who really wants the Non Performing Notes will never end up getting any. Possibly their info has now passed through who knows how many peoples hands.
Typically each month I have access to 200-500 1st Lien, Non Performing Notes that are Conventional Mortgages.
Non Performing Notes
What can you Expect with my NPN’s - Non Performing Notes?
- Always 1st Lien
- Residential Discounted
- Fresh BPOs
- Utilities Verified
- Taxes Verified
- Fresh Title Reports
- 10 to 50% below BPO Value
As with anything, there is a Confidentiality agreement, and a fee agreement between the buyer and myself.
I will initially provide the investor the following:
- Reference # for the Loan
- Type of Loan (typically Conventional)
- City & State
- BPO Value
- Maturity Date
Once you have located the Non Performing Notes that you may have interest in, You will begin the Vetting Phase.
Because of the sensitive borrower information revealed, all buyers are vetted for criminal background check. The turn around time is typically less than 24 hours.
Once that is complete, you will have access to view all info on the NPNs.
*You will then Submit your Bid on the Non Performing Notes that you want to make an attempt at purchasing.
If you have any questions, please feel free to ask. I have closed many NPNs for Investors. These can be cherry picked, or purchased in larger packages. Typically I see BPO Values ranging from $9,000 to over $750,000.
How Many Non Performing Loans can there really Be? Check out Fannie Mae… They are getting ready to unload up to 1.2B! That is 1.2 Billion in Non Performing Loans. That doesn’t take into account The Individual Banks, Credit Unions, Freddie Mac, etc.
*We can chat further about exit strategies (i provide assistance and successful strategies on buying outside of your area/state/county) and I can provide you with a great excel spreadsheet that will generate all exit strategies to show you which will provide the greatest return on the non performing notes.