Performing note buying means purchasing existing mortgage notes, the debt instruments, where the borrower is current on payments, acquiring the right to receive those payments.
Log in to followFirst note I ever bought and I want to write down what happened while it's still embarrassing. Performing first lien. UPB 54,300, coupon 9%, payment 497, 31 months of on-time paym…
Got told two contradictory things in the same week. One person said buying notes is just buying an asset, no license needed, anyone can do it. Another said if the loan is on a hou…
Two notes offered to me the same week and they split the room every time I describe them out loud. First: 41k balance on a 900 square foot house in a small town where the mill clo…
I've now looked at four notes where the pay history is spotless for a year and a half and the reason it's spotless is a modification that cut the payment. The seller's tape calls…
Two things in front of me and I only want to buy one note this year. Option one is a tape from a note broker. Eleven performing loans, seasoned bank paper, asking 72 to 84 of unpa…
The seller's tape said 5.0% fixed on an $88,300 balance. The original note said 6.875%. That's how I found the mods. There were two of them, one from 2016 and one from 2020, both…
I have room for one more note this quarter and two candidates that price to almost the same number, so the choice is really about which risk I want to hold for the next several ye…
Posting this because I did the modeling carefully and still ended up with the wrong answer, and the mistake was in the structure rather than the math. I bought a partial rather th…
Trying to size an entry position and the ranges I see quoted are all over the place. People talk about $20,000 notes and people talk about $150,000 notes as though both are normal…
Running numbers on single-note purchases in the $40k to $70k price range and the friction is worse than the models I've seen assume. Between the transfer fee to move a loan to my…
A guy in a local investor group is selling a note and offered it to me because I said I had money sitting and no properties. I've read about this for maybe three weeks and I don't…
Closed this one out last month after 19 months, so the numbers are final. What I bought: performing second lien, UPB 41,000, coupon 10.5%, P&I 402, 27 consecutive on-time payments…
A private lender I know is selling a note on a house I did the kitchen and bath on a couple of years back. Owner-occupied, borrower has apparently paid every month since. He wants…
Note on my desk, 9% coupon, amortizing on a 30 year schedule, balloon at month 84. Balance 118k, seasoning is 29 payments clean, I'm being quoted 74. At 74 the yield to the balloo…
I manage properties, so collecting money from people who live in houses is my whole week. When I started reading about performing notes my first thought was that I'd just take the…
51 clean payments, 8.9% note rate, $498 a month, UPB $56,200. Small southeast town, 1.1 acres, doublewide set on a permanent foundation with skirting and a carport. I paid 84 of U…
I'm looking at my first performing note, single family, borrower current for about four years. The seller emailed a list of what gets delivered at closing: original note, allonge,…
The O&E report came back with one unpaid tax installment, $1,840, on a loan with no escrow account. That's the part I want to talk about, because everything else about this note w…
Purchase agreement on a performing first came back with two clauses I keep rereading. One, the endorsement is in blank on an allonge, not endorsed specifically to me. Two, the ori…
Looking at a pool of seasoned performing seconds, and the pricing convention in it is bothering me. The tape prices them around 88 to 92 of unpaid balance, which for a note at 9.5…