Purchase Defaulted Institutional Note Possible?
Is it possible (or probable) that a note & mortgage with an institutional lender could be purchased at a discount by investors like us? More specifically an FHA insured mortgage?
I'm working out a backup plan in case the mortgage company won't short sale a pre-foreclosure property that I have found.
I've asked the question of a few note buyers through other websites whose responses were "what incentive is there to the mortgage company since they will be made whole". In this particular instance the foreclosure case has been stalled (3 years and counting). For the mortgage company to go forward with their case they must continue to spend legal fees etc.
My thinking is I could offer to purchase the note and mortgage at a discount since it has been nonperforming for so long. The exit strategy is to offer owner deed in lieu of foreclosure and then sell to another investor. (Owner already in agreement). There are other options, yes...I just happen to like this one.
Do you think I have a prayer? Do you have a suggestion on who to speak with or what to say in order to present such an offer? Loss mitigation department comes to mind but, is that right?
Steve[ Edited by uvpipres on Date 07/11/2003 ]
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