Rehabbing Paper - A How To (Minus the 'How' and 'To')

[Doug N.]

Hello BP Nation - 

I have seen some interesting references in a few posts about rehabbing paper (converting non-performing or under-performing notes, I believe), and though I have searched high and low on BP, it seems to be an elusive subject - or maybe these search terms are too common for relevant results. 

From the little I have read, my best guess is that it's no small game of skill - evaluating the note(s) for performance potential (and possible fraud?), somehow convincing the borrower to pay again, and... (lots more here). @Steve Vaughan referenced a bit about this in a recent post about tired landlords. 

I am a little reluctant to post such an open ended question, and I could probably figure it out on my own with a few quick searches, but the terms are too ambiguous to get any decent results. If anyone has better names, or a few gap-fillers, that would be much appreciated. Thanks in advance!