Buying your own note.

[William Wallace]

I'm pretty new to the rules and such of buying/selling notes, and I just had a question. You can go right onto fciexchange, and find NPNs that are being sold for huge discounts, sometimes under 5% of the principal owed. Out of curiosity, if you owe money, and know you're behind on your payments, what is stopping you from purchasing your own NPN at a discount, which you created with your own negative behavior, besides the threat of foreclosure?

[Bill Gulley]

What you're suggesting is a payoff, an offer to release the debt which has tax consequences, you can't buy your own note, you are the maker of the obligation. Someone else can buy it and forgive the debt, but unless you qualify as to the tax exemption of forgiveness of debt being the same as income, it's not a get out of jail free card. :)