Can you cherry pick default notes?

[Sam M.]

Ok, I have done some research and it seems as though one might be able to cherry pick default notes from a list. I have heard of people doing this instead of attempting a short sale.

How is this done?

How hard is it to get notes on a specific property where you already know the note is in default? (Liz pendens filed)

At what point in the default process is it the best to go after these notes for the acquisition of the property?
Thanks,
Sam

[Bill Gulley]

Hi Sam, yes, notes can be cherry picked and it's best to approach the borrower first anyway as a lender can't really tell you about a note in default.

The process simply is get with the borrower and get a request for the bank to sell you the note along with other agreements. Without a request to do so, the bank can't sell an individual a note. Get you deal with the borrower, whatever you work out. Then approach the bank. You might get a discount off the amount owed since they will have expenses taking any other route. When you buy it, there is an assignment. This is filed for record. You'll get the note and ensure that lender has endorsed the documents just as they would endorsing a check, "pay to the order of XXXX". Bam! Done! If you need more, you're welcome to PM me! Bill