All banks, credit unions, and other mortgage lenders have loans in varying stages of delinquency or default.
Online PR News – 11-March-2010 – – Banks are sitting on a mountain of bad mortgages they would love to get rid of. They're stuck with loans they can't service-and they want them off their books. "Buying defaulted mortgages is a growing business. In today's real estate market, it represents a significant acquisition opportunity," says Lance Falow Partner at The Heathcote Group.
Here are a few tips on buying distressed mortgages:
Hard cash or access to financing must be in place before you contact any lenders.
Decide on the types and sizes of loans for which to bid.
Contact lenders to indicate your interest in purchasing default mortgages.
Ask for a spreadsheet that includes a borrower identification or loan number, balance, inception date, interest rate, monthly payment, next payment date, last payment received, maturity date and payments due.
Calculate the potential for collection and the approximate amount of the loan(s) that may be received.
Perform due diligence.
Make an offer and be prepared to negotiate.
Interested buyers must approach lenders carefully and must have sufficient financing or funds to complete a purchase as agreed.
The Heathcote Group
Group lends money on commercial property and nonowner occupied residential property. It also buys defaulted mortgages and distressed property, both in New York and Florida.