Buying a mortgage note means you are buying the , not the property . You become the lender, collecting monthly payments and holding the right to foreclose if the borrower stops paying.
Notes are bought at a discount to the "Unpaid Principal Balance" (UPB).
The contract governing the trade.
Run a title search to ensure there are no superior liens (like unpaid taxes or IRS liens) that could wipe you out. 4. Make an Offer
💡 Start by searching for Note Brokers or online marketplaces like Paperstac or NotesDirect . It is much easier for beginners to buy through a platform than cold-calling banks. If you'd like, I can help you: Draft a script for calling bank asset managers. Explain the difference between first and second liens . List the specific risks of buying non-performing debt. Do you have a specific budget or geographic area in mind? how to buy a mortgage note from the bank
Often hold their own "paper" rather than selling to the secondary market.
Review the original Note and Deed of Trust. Ensure the "chain of assignment" is unbroken. Buying a mortgage note means you are buying
Large banks (Chase, BofA) rarely deal with individuals. Target smaller institutions: