None-Performing Note in Upstate NY

[Dean DeMattia]

Hey everyone,

I’ve come across a unique opportunity. I found an off-market deal where the owner seller financed a commercial multi-family property to someone on a 5 year mortgage with a balloon payment at the end of the 5th year. After 5 years the borrower couldn’t obtain financing to make the ballon payment. The owner decided to extend the mortgage to give the borrower time to obtain the ballon payment financing. Not sure if an extension was met. Supposedly the borrower decided to stop answering and hasn’t made any payments in years according to the note holder. The owner hasn’t taken any legal action. The note holder offered to sell me the non-performing note. I consulted some lawyers and seemed like the foreclosure process isn’t that bad.

The property includes 6 individual one bed one bath cabins. It’s located in a popular Air BNB resort area with a great school district. Was thinking about potentially wholesaling.

Has anyone bought a non-performing note?