Friday, 19 February 2016

3 Great Tips to Invest In Non Performing Notes

Non performing notes are those mortgages where the borrower has been unable to fulfill his principal and his interest obligations on the mortgage and has been insolvent. In this case the bank will seize the property of the debtor under the mortgage. The property will be then sold off by the bank at a foreclosure and the purchase amount will be paid to the bank. BGK Investments, top real estate investment experts in California share tips for those interested in non-performing note purchase.
A performing note purchase boosts confidence
When you buy a performing note, it will give you a good understanding of the dynamics of non performing note sale and purchase and prepare you for the tricky aspects of non performing note purchase.
Are you ready for a foreclosure
Always bear in mind that you are buying a “non-performing” asset, non-performing being the keyword here. That is the reason the banks price them so aggressively to get rid of them since they are aware of the effort and costs associated with getting the property back as a performing asset. Are you prepared to wait to get a clear title? Are you prepared for big legal fees? These are actual scenarios that someone interested in a non-performing note purchase should consider before making the leap.
Arm yourself with information
If you are preparing to purchase a non-performing note you need to get all the important documents such as the original note, all related amendments and any assignments. Work with the lender/bank to procure as much information as possible about the property. Use property records to accurately evaluate the investment opportunity.

Carefully carried out non-performing note sale / purchase can bring high returns but you need to know what is involved with these investments before laying your cash out there for the investment. For expert advice, call Ben Keisari at BGK Investments in California.