I would like to know what is the best way to approach the note holder for purchasing a note prior to foreclosure?
Will banks sell a non-performing loan after they filed a NOD but before they file a NTS to individuals? I guess it would be useful to buy a home before it goes to auction. if you’re willing to pay the full balance due on that note, maybe if the owner has a large equity position, it could be interesting. Is that the reason you’d want to do that?
The question is not ‘why’ but ‘how’.
I would also like to know how to approach the lender. I would guess it would start with a short sale negotiation and move to an offer to purchase the note. Any ideas?
The successful note buyers that I know tell me that it all comes down to finding the right contact at the institution. Products like the laneguide.com can help, but mostly they find these contacts through dogged determination.
I have have also had some short sale investors tell me they have pulled this off.
Personally I’ve ran mostly into dead ends when trying to buy notes (though have only tried a few times).