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Permalink Reply by Jeff Payne on July 10, 2011 at 9:46am

Yes, I have but the only problem is that the areas that I specialize in my area, there are few opportunities for reselling the properties for them

Eric Mieles said:

Jeff,

Have you networked before with some of these groups? Please message me fi you have experience you can share. Thanks hope your weekend is great.

Jeff Payne said:

Eric is correct.  There are groups out there that are buying these notes literally for pennies on the dollar and they are then in the drivers seat.  Imagine this, you buy $20,000,000 million worth of non performing notes for $3,000,000.  Even if the fair market value of the properties secured by those notes is $12,000,000, the new owner of the note has alot of options.

Option #1, They work with the homeowner to modify the mortgage, lets say, they cut the principal amount in 1/2 and the homeowner continues to make their payment because they now can actually afford it.   Note holder wins by getting paid the interest on the new modified note, homeowner stays in property.

Option #2, New note holder works with homeowner on a successful short sale and sells the property at fair market value or even a bit below, note holder still makes money because they bought the note CHEAP, homeowner successfully gets out of home via short sale.

Option #3, New note holder forecloses and sells property and still makes boat loads of money.

The original note holder sells the notes cheaply to get them off of their books.

Eric Mieles said:

Beverly they are speaking about buying a distressed non performing note from the lender/investor. This would put the purchaser of the note in the 1st position or (if they bought a 2nd position) they would ultimately become the bank!!

So imagine the power you now have and the ways you can control a property if you owned the note. Short sale approval?? You are the one to approve it lol!

Multiple other ways they take control of the property once they own the note. Very savy way to invest and yes you guys are correct in bulk purchases however there are note brokers who may sell one off's.

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