Non-Performing Hard Money Loans - Who is Buying?

[Joseph Cacciapaglia]

In the last few days, I've noticed an uptick in non-performing HMLs being listed for sale. Is anyone on here buying those, and if so, what is your exit strategy? I worked on a lot of commercial work-outs in the last downturn, and that was big business at the time. It seems like a similar model for single family HML would be too cumbersome to be worthwhile. It also seems like there ins't enough uniformity in HML terms to set up the kind of modification mills that popped up for conventional loans last time. I'm curious what note buyers are planning to do in this market. Are you just planning to get such a large discount that it will be worth the time to work through those issues? I haven't seen any closed note sales that seem to provide this kind of discount. What has everyone's experience been with these?