NoteBuyingProfits.com/blog

On how to buy notes & researching title:

I hope you enjoyed your turkey on Thursday!

If you are following along in our 8-part Webinar Series on
how to get you jumpstarted to buying your first note
as part of the Private Access Club (PAC) (f.ree 30-day Trial,
hint, hint), here’s an

* * * How-to-Buy-Notes EXERCISE FOR YOU TO REVIEW * * *

Find out as much as you can about what (and who)
is on title for:

43 Poplar St, in Old Town, Maine

Follow the instructions in Appendix B: the Title
Checklist from the Roadmap that you receive as part of
the A-Z Note Buying Course (in case you
haven’t ordered it already - you are getting 25% off
until including this Sunday with SPECIAL CODE ‘tg’).

Actually, I just realized that the title check list is part
of the free excerpt of those 23 pages worth of
check lists in the course.

So, check our Note Buying Checklists.

And in the coming week’s Private Access Club Session
we’ll review this together and compare results.

===> This is your opportunity to learn how to review
title on a property, and to compare notes with me as
you go.

Learning how to buy notes BY DOING.

Remember, this is the 2nd step of 8 in launching
yourself into Note Buying. Step by step.
(And all previous webinars are neatly stored in the
PAC members area for later review for you…)

And in case you don’t have the A-Z Course and want to
follow along without it, not a problem
(though you won’t get as much out of it).

Going through these steps is a VERY useful exercise.
Guaranteed.

So, join me next Wednesday at 5pm.

(Want to get a taste what those how-to-buy-notes webinars are like?
Check out the week 1 webinar on ‘How to Determine the Value of any Property’.
Accurately - without leaving your couch…’
93 minutes of no-fluff info for you. Absolutely f.ree.)

Somebody will buy those non-performing loans and profit
from them. May as well be you and me.

And there are more nonperforming notes around than any one
person or entity can handle these days…

Talk soon,

Dean

=================================

* Check out our NEW Note Buying Forum

* Ready to REALLY get down & dirty?

‘A-Z Profiting from Defaulted Mortgages Business-in-a-Box
-> 16 hours+ of Video Training, 23 pages of Note Buying checklists, a complete 8-Week How-to-Buy-Notes Roadmap, an extensive Table of Contents for quick reference, plus TONS of Bonuses.
[===> You can check out Hours of F.REE Training Videos of the actual Course Content HERE.]

* ‘PRIVATE ACCESS CLUB’ (PAC) - Test-Drive it for F.REE for 30 Days!
Get Your Questions Answered LIVE & get Ongoing Support & Training!
Conference Calls/Webinars, Interviews with Industry Insiders (Bank Reps, Top Note Brokers, etc.), Real-Life Case Studies, Role-Playing, Members-Only Forum, and ‘HOT SEATS’ to get coaching on Your Deals/Business Challenges, and more

* Questions? Chances are I already answered them at www.NoteBuyingProfits.com/blog. (Use the ‘Search’ feature or click on the ‘FAQ’ category on the right to see them all!)

=================================

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How to buy REOs - Comparing REOs vs. Nonperforming Notes

It’s a tough choice, I know.

And I’m sure some people look at nonperforming notes and
say “why would I EVER want to own paper when I can own the real
estate for soooo cheap?!”

Well, yes. It can be cheap.

Well, yes. It is real property as opposed to a debt
obligation.

And yes, you can get rid of it pretty quickly if you
price it right.

———————————————————————

* * * So why shouldn’t everyone drop everything they’re
doing and chase REOs? * * *

———————————————————————

1.    Valuation Risk.

You’ve gotta nail the home value,
and take good care of evaluating interior condition
here. It’s one thing to find yourself with a lemon
(e.g. loan), where you have several ways to turn the
lemon into lemonade (e.g. get borrower to make
payments). It’s quite another when you have a vacant
property, to try squeezing sweet juice out of this
lemon. Can obviously be done, but you should know your
area values and your interior condition much better when
buying REOS than when you’re buying notes.

2.    Purchase Risk.

They can be a time waster until you
nail your sources! Usually 2-5 brokers deep in a
chain, at least one ubiquitous “attorney” who is a
fraud and huckster claiming he or she is (not has, but
“is”!) a “mandate” for someone else.

3.    Deal Risk.

A friend of mine just spent 2 months
chasing one deal of 16 REOs. He just closed on 1 of
them. All the others were pulled by the seller as the
agents (all but 1 were listed) got the properties into
contract. Or they were lost to a competitor since
there were 3 brokers in between him and the seller.
The one property not pulled was … you guessed it … the
one that wasn’t already listed. The “loss ratio” on
note pools - in other words the rate at which notes
are pulled from a specific pool - aren’t as high by
any means. (One day, ask me about the west coast pool
that we lost!)

4.    Discount Risk.

The discounts that you typically
hear on REOs may not be quite as juicy as you’ve been
made to believe. Unlike a “sweet” note deal that
closes in the 30%’s, REO prices in that range are
typically a pipedream. But you’ll hear pricing that
low on a regular basis.

I’m not panning REOs by any means.

Just jump in with your eyes open, and don’t get
fooled by all the hype that you’re reading about
the REO deals to be had right now.

Talk soon,

Dean

========================================

* Check out our NEW FORUM: www.NoteBuyingProfits.com/forum

* Ready to REALLY get down & dirty?
‘A-Z Profiting from Defaulted Mortgages Business-in-a-Box’.
-> 16 hours+ of Video Training, 23 pages of note buying checklists,
a complete 8-Week How-to-Buy-Notes Roadmap,
an extensive Table of Contents for quick reference, plus TONS of Bonuses.
[===> You can check out Hours of F.REE Training Videos of the actual Course Content HERE.]

* ‘PRIVATE ACCESS CLUB’ (PAC) - Test-Drive it for F.REE for 30 Days!
Get Your Questions Answered LIVE & get Ongoing Support & Training!
Conference Calls/Webinars, Interviews with Industry Insiders (Bank Reps, Top Note Brokers, etc.),
Real-Life Case Studies, Role-Playing, Members-Only Forum, and ‘HOT SEATS’ to get coaching on Your Deals/Business Challenges, and more

* Questions? Chances are I already answered them at our Note Buying Blog.
(Use the ‘Search’ feature or click on the ‘FAQ’ category on the right to see them all!)

=================================

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Loan Modifications… Who took my Non-performing Mortgage?

OK, so the word is out, the Doctor is in, and the medicine is … loan modifications. Specifically, principal write-downs.

Interesting.

The Hope for Homeowners initiative passed by Congress in July and officially launched a month-and-a-half ago to much acclaim, is a potentially positive FHA insurance package aiming to insure $300B of new mortgages for borrowers in a “negative equity” position.

Negative equity, of course, meaning that the loans are worth more than the home.

So … what’s the catch?

Well, the borrower has to qualify with a 31% or lower DTI ratio, at least 6 payments made and none of them late.

What do they get if they meet those magic criteria? (Oh, by the way, if I had to hazard a guess at the average DTI for loans originated in 2007, it would probably be 40-45%).

So, who’s going to qualify?

The answer is: very few people.

In the first 2 weeks of the program, exactly 49 people applied, and … none were approved.

And as for the highly touted FHA Secure program (remember that one - the one that was supposed to be the saving grace for borrowers who had missed a payment - well during the same period a total of 203 mortgage applications were filed and 49 approved.

In that same time in California, approximately 1,300 homes saw a Notice of Default filing.

So what’s the big deal here? Can’t we just give the H4H program some time?

Sure.

But remember that lenders are going to be looking for federal backing for their principal write-downs if they’re going to be participating in these 90% principal reduction plans. H4H is one of them.

So, while everyone’s waiting for the good news on H4H to come out, why not get your wallets out and make an offer on those 49 non performing notes that were just turned down?

There will be a whole lot more non-performing notes (to buy) where those come from.

Talk soon,

Dean

=========================

* Check out our NEW FORUM: www.NoteBuyingProfits.com/forum

* Ready to REALLY get down & dirty?
‘A-Z Profiting from Defaulted Mortgages Business-in-a-Box’.
-> 16 hours+ of Video Training, 23 pages of note buying checklists, a complete 8-Week How-to-Buy-Notes Roadmap, an extensive Table of Contents for quick reference, plus TONS of Bonuses.
[===> You can check out Hours of F.REE Note Buying Training Videos of the actual Course Content.]

* ‘PRIVATE ACCESS CLUB’ (PAC) - Test-Drive it for F.REE for 30 Days!
Get Your Questions Answered LIVE & get Ongoing Support & Training!
Conference Calls/Webinars, Interviews with Industry Insiders (Bank Reps, Top Note Brokers, etc.), Real-Life Case Studies, Role-Playing, Members-Only Forum, and ‘HOT SEATS’ to get coaching on Your Deals/Business Challenges, and more

* Questions? Chances are I already answered them at www.NoteBuyingProfits.com/blog. (Use the ‘Search’ feature or click on the ‘FAQ’ category on the right to see them all!)

2 Comments

How to buy Notes- Current Market Update, and Implications for You as a Note Buyer

Treasury Secretary Henry Paulson just reversed course on the fabled Troubled Asset Relief Program (TARP) and said that Treasury will no longer plan to buy Troubled Assets.

It’s a shame, and a mistake.

Underlying the current credit and broader financial crisis is a set of fundamentally flawed contracts (mortgages) that are not performing the way they should be (e.g. with the borrower paying their mortgage regularly).

I can only assume that the tack that Treasury is going to take is to move back in the bus from the driver’s seat to the back seat and watch while state and federal agencies start legislating loan modifications and foreclosure moratoria in order to “address” this problem.

That’s also flawed.

And our experience during the Great Depression in terms of foreclosure volumes, asset price recovery (e.g. home prices), points to the solution being less regulation on mortgage foreclosures rather than more.

But so be it. Paulson’s been outvoted and recognizes that the Obama camp will likely be coming in wielding a big stick when it comes to servicers and lenders, and forcing more loan modification behavior into the loss mitigation chaos that exists right now.

So what does it all mean to you and me as to how to buy notes?

It means that the “competition” for the nonperforming notes that you and I are looking for is no longer there.

It means that you should re-double your efforts to reach out to banks now, while they’re hurting from the news that they won’t be able to sell their troubled loans to the government at a better price than you and I would pay when buying notes.

It means that we will see more and more bank merger activity, and with more banks failing, more assets will make it onto the secondary market as new management teams “clean up” their newly-acquired books.

Stay sharp.

Dean

===============

* Check out our NEW FORUM: www.NoteBuyingProfits.com/forum

* Ready to REALLY get down & dirty?
‘A-Z Profiting from Discounted Mortgages Business-in-a-Box‘.
-> 16 hours+ of Video Training, 23 pages of checklists, a complete 8-Week Roadmap, an extensive Table of Contents for quick reference, plus TONS of Bonuses.
[===> You can check out Hours of F.REE Training Videos of the actual Course Content HERE.]

* ‘PRIVATE ACCESS CLUB’ (PAC) - Test-Drive it for F.REE for 30 Days!
Get Your Questions Answered LIVE & get Ongoing Support & Training!
Conference Calls/Webinars, Interviews with Industry Insiders (Bank Reps, Top Note Brokers, etc.), Real-Life Case Studies, Role-Playing, Members-Only Forum, and ‘HOT SEATS’ to get coaching on Your Deals/Business Challenges, and more

* Questions? Chances are I already answered them at www.NoteBuyingProfits.com/blog. (Use the ‘Search’ feature or click on the ‘FAQ’ category on the right to see them all!)

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