So Many Ways to Buy( Part 2)

By Bruce Kellogg

# 11

– Buy Defaulting Note, Then Foreclose

This method involves buying notes or mortgages that are in default at a substantial discount, then foreclosing to acquire the property. Notes can be purchased through advertising on Craigslist, newspaper ads, direct mail to purchased lists, or websites dealing with note transactions. Searching on the internet will provide organizations with courses on notes. This method can be highly profitable, but is quite sophisticated. Additionally, foreclosing on a note usually does not afford the opportunity to conduct inspections, and a title search is essential. Some states provide a“ right of redemption” for the foreclosed borrower to recover ownership, adding further complexity and risk.