Can i Buy Foreclosure Notes From Banks

Question

Good evening, I have a question I hope someone can help. I would like to know how difficult it is to buy mortgage notes from the Bank. Typically Iâ€™ve only heard of individuals purchasing notes from other people not Banks. I really do not have the means to by bulk loans but I thought I read somewhere that smaller banks may be inclined to sell to individuals. My goal is to find properties in the early stages of foreclosureâ€¦.. Am I on the right track? 
Second quick question. If I can do these types of dealsâ€¦ what do you think about using a hard money lender to purchase multifamily properties and/or bulk properties? 
Julius Wilkerson

Marc Faulkner · Answer

Banks (not just the small ones) and other institutions are selling and buying notes all of the time in bulk.  Banks sell to free up capital and re balance portfolios, improve investor relationships, decrease liability and a number of other reasons.  I am sure if you have a proven system of helping banks get rid of loans that are in, or getting ready to be in, foreclosure that you will be able to find all of the non performing notes you are looking for.  I am curious what your angle is and how you work these deals.  For certain you are going to need a game plan, proof of funds and the ability to move quickly if you plan on getting into this space.

Bill Gulley · Answer

What you are asking can be accomplished, but to be honest with you, it's not a place to start in your investing business. Samller banks may work with you. But first, you need to have the borrower on your side and actually make the request for the bank to sell the note. At that point, it is almost as if the borrower is offering a way for the bank tobe paid off. You would also be free to cut a deal with the borrower if necessary as this would not be a short sale.

Larger banks could be forced into selling a default6ed note, but it would take more expertise in dealing with banks and being aware of surrounding legal issues.

This has been discussed here on BP, you might search for the topic or look at my past posts, if Icould direct you there I would, but I'm not a techie! Good luck...