First Non-Performing Note Purchase--Help/Advice Please!

[Clay Manship]

Hello to all note experts and paper investors-

I am a real estate guy, but recently have been digging into investing in performing and non-performing notes. I would like to learn the business inside and out, and, just like all things, after learning and listening, had to just jump in.

I recently won a bid on a non-performing Note here in my local market of Indianapolis. Here are the particulars of the purchase:

1st Lien Position

Non Performing

Rate: 8.25%

UPB: ~$30,000

Purchase Price: $2,300

After doing some digging, the borrower is a husband/wife couple who owns only one property (in their names) in Indianapolis, and the tax bill is mailed directly to the subject collateral, thus making me assume it was at one point owner-occupied. The collateral itself is worth approximately ~$30,000. The husband passed away in November of 2011, which is when the last payment on the loan was made. However, after looking into the county tax records, three years of property taxes were recently paid ~$10,000 which kept the property out of tax sale. Yet no payments have been made to the current Note holder...

Ideally, I would like to work with the borrower to get the loan performing again. Reduce rate, and increase amortization/payment amount in order to recoup investment more quickly, thus increasing the value of the note.

Obviously I have documents to look over and confirm that there are trails of recordings and assignments at the recorders office during due diligence. However...is this a deal worth pursuing? If nothing else, it is $2,300--probably $4,000 or so after fees and legal costs. If I end up losing some coin, it isn't the end of the world. I'd like to have some real life experience in getting deals like this done, as I would like to do more and more of this in the future.

Any thoughts, comments, or ideas would be helpful. Thanks to all!