How to evaulate NPL Mortgage Notes

2 Replies

Originally posted by @George M Luzer :

Need Advice on How do you read (evaluate) a tape on Mortgage Notes ? 

This is a topic that  takes  weeks, months, or even years to master. Far too long to answer in one  Forum post.  I highly suggest you get some education  through  someone like Scott Carson or Eddy speed

Agreed, it's an art and a skill that takes time. The best thing to do is learn the steps and then start there and run through a number of them. Start with your exit strategy first and then work from there. 

For example - if you're into keeping people in their homes and restructuring the loan - then that is your first filter Owner Occupied homes. Make sure it is their primary residence. Do some Google Street view, look at the time of the photos and virtually drive around. Are they mowing the yard? Do they keep their home in good shape? Are there things for children in the yard? 

You're trying to get a feel for their attachment to the home and if they've just been tossed around by the big banks. 

From there I would start doing my other forms of DD (title, taxes, BPO) using something like Pro Title for most of that. 

If on the other hand, your exit is for the property - start with the vacant homes. 

But like @Chad U. said it can't be summed up in one post because there are so many facets to what can be done. Listen to @Scott Carson he gives away gold on his podcast and every Monday night. Here is an example of one he did on DD: On Due Diligence.