questions about buying notes/paper
OK, this idea intrigues me. I was browsing FCI Exchange today.
Questions:
1. If I want to buy notes, do I have to be licensed as a lender or servicer per the SAFE Act??
2. Would I have to service the loans? Or is there a third party that can do this for me?
3. Is there opportunity in modifying non-performing loans (presuming the number work?)
4. This is the BIG question...if I am truly interested in the property moreso than the note, I assume I can't buy a note with the INTENT to foreclose, as that would be more predatory than you could imagine, however, what about a situation where I buy a non-performing note at, say 40 cents on the dollar, modify their balance to a lower figure, then, myself offer to the owner to BUY the property off of them, which would be a voluntary transaction on their part? Is that legal to do? Something like:
Loan balance $392,000
Property Value $300,000
Purchase note for $198,000
Offer to buy property off of owner for $230,000, write down payoff to $198,000, then seller gets to walk away with cash and I get a property at a 25% discount.