Instead of SS - Buying the note from Fannie Mae

[Luiz Souza]

How should I go about making an offer to buy the note from Fannie on a non performing loan/pre-foreclosure?
Any tips, ideas, books, etc?
Thank you.

[Bill Gulley]

I think the only way it would happen would be in a foreclosure and the offer is made as a payoff, where the offer is requested by the borrower and it may be less than par, but to approach them to buy a single note, I agree with the above.

You might recall, I believe I brought this up months ago about buying notes. Two important elements here...one is that it needs to be as a request of the borrower and two, after a notice of default. Doing so gives the borrower legal standing to force the sale of the note as a means to pay the debt, sometimes a discount is accepted, if not, it may require the par value be paid, but really, a discount is better than foreclosure, sale, holding the property, listing it for sale and on and on....

Foreclosures have been streamlined like a Model T assembly line now with all of the activity, many in the process are nothing more than clerks with limited banking experience, so what they know is what they have been told to do. Anything that is contrary to thier daily activity will cause them to think and I doubt many can do that. So, it's important too to get to someone with more authority and legal understanding.

But also, to what I have seen lately, with the number of wrongful foreclosures, they simply plow ahead, even if it is in violation of law, since the remedy is for the borrower to file suit, go to court, win, get the house back and still be behind, so there is not much of a remedy or penalty for doing anything wrong.