Ask me anything - note investing

Tax Liens & Mortgage Notes
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Ask me anything - note investing

Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

i have been very fortunate during my career to have been able to acquire and dispose of what i would consider a decent amount of mortgage notes. many of those that we invested in were non-performing loans and while i like to say we believe we have pretty much seen everything, we know that is not the case.

i do know that there are a lot of people who look to get into this space because some of the gurus make it sound like it's very simple and mailbox money, which is the furthest from the truth.

for those who are considering or have recently just gotten into the space, if you have questions about mortgage note investing, feel free to post a question below. happy to share my two cents along with many others who also have a significant number of years of experience and can also add to those comments. please note there is also no such thing as a dumb question. 

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  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    1w

    What are the best sources online to find non-performing notes?

    Is it worth contacting local lenders directly?

    What about buying a note right before the foreclosure auction? Is it worth contacting the law office handling the foreclosure to try to buy the note.

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    • Chris SeveneyBusiness Member
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      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      1w

      Depending on the amount you are looking to buy, sources like Paperstac, Dave Pollio at SN Servicing and JKP Holdings sell one off loans.

      I have had zero luck with local lenders, as they rarely sell and when they do, their pricing expectations are typically not in alignment with what you want. I would argue against this as the time and effort rarely provides any reward. You would be better off reaching out to indiviudal note investors vs. banks

      Buying right before foreclosure - The law office is not going to go out of their way to contact the lender, and in many instances it is the servicer managing the note and by the time it goes from attorney - servicer - lender back to servicer - attorney you will have gotten nowhere. Also the lender has spent all the money for the FC sale they mine as welll just foreclose and then sell it as a REO. This is not to say some will not sell the asset, as it really depends on the lender, but you are much better off contacting the lender directly. Also if it is a large bank or a trust that is from a securitization - you are wasting your time. They will not sell it.

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  • Diana Khan
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 305 posts · 114 votes
    1w
    Quote from @Chris Seveney:

    i have been very fortunate during my career to have been able to acquire and dispose of what i would consider a decent amount of mortgage notes. many of those that we invested in were non-performing loans and while i like to say we believe we have pretty much seen everything, we know that is not the case.

    i do know that there are a lot of people who look to get into this space because some of the gurus make it sound like it's very simple and mailbox money, which is the furthest from the truth.

    for those who are considering or have recently just gotten into the space, if you have questions about mortgage note investing, feel free to post a question below. happy to share my two cents along with many others who also have a significant number of years of experience and can also add to those comments. please note there is also no such thing as a dumb question. 

    @Chris Seveney, this is a great topic. From the legal and title side, I’ve seen how much the paperwork behind a note can matter once someone starts looking closely at the deal. A note may look attractive based on the balance, payment history, and collateral, but missing assignments, servicing records, or problems in the chain can make things much harder later.

    I’d be curious what document issue you see most often with newer note investors that they do not catch until after they buy. Is there one thing you always want to see in the file before you get comfortable with a note? We’re both active in the DMV real estate space, and I always enjoy learning from people who have been deep in a specific part of the business for a long time.

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