I appreciate the advice. I am only planning to purchase these defaulted loans for properties my company already got the deed from the homeowner in foreclosure prior to approaching the lender to purchase the mortgage. So this risk does not necessarily apply since the homeowner is already in our back pocket and has signed the house over.
Has anyone attempted this successfully? I have in the past, but have been told my many institutional lenders, they do not sell at all, or they only sell in bulk. I’m just looking for a workaround to this objection.
Buying Defaulted Mortgages from Inst. Lenders - Posted by Ron (TX)
Posted by Ron (TX) on February 25, 2009 at 12:03:14:
Have any of you had success purchasing mortgages from institutional lenders? I have attempted this in the past, and was told either 1) they only sell their loans in bulk or 2) they only sell to other lenders. I have just purchased a state-licensed mortgage company and want to use it to buy defaulted mortgages as a workaround to short sales. Anyone ever had luck in this area?
Re: Buying Defaulted Mortgages from Inst. Lenders - Posted by Jim - NY
Posted by Jim - NY on February 26, 2009 at 19:07:26:
Just looking at the latest news from Washington, DC concerning legislation pertaining to loan modification by lenders and allowing borrowers to file bankruptcy thus placing the moification terms in the hands of the judge. Sounds like the old DC two step. Shuffle the responsibility for the loan from the lender to the courts. WONDERFUL!!!
If desparate homeowners need assistance you would THINK that the lenders first priority would be to step in and work with the payor to fix the problem. Oh, right! Sorry I FORGOT! It was these same BOZOS (sorry, Bozo the Clown) who created this mess. Now, though they protest with vacuous noise from the pie holes of their lobbiests; that their paid representatives (yes those elected officials) should fix this for them. OH WOW!!! Watch your backsides kiddies.
Has anyone in DC suggested scrapping ALL THOSE CREDIT DEFAULT SWAPS ON THE COLLATLERALIZED DEBT OBLIGATIONS? That is only 45 TRILLION DOLLARS. If one (yes only 1) big player in the CDS game has to pay up, Treasury will not have enough printing presses to print new $ that will be needed then. Smart, dishonest people created the mess, and for the most part, those same people are still pull the strings. This isn’nt a joke people. Small individual investors are at dire risk here. This not a Democratic or Republican issue, it is an AMERICAN ISSUE.
If sub-prime lenders created this problem, then the remedy should be restricted to those lenders. Sorry for the rant, but if you are thinking of purchasing bad paper from institutional lenders, you should be aware that a bankruptcy filing may follow the note to your door. I’m not qualified to give advice on purchasing any note, but you may own that note, while having to wait in limbo for a judicial decision on the bk filing. Consider the risk before going forward. It’s your $.