Best states to buy NPN seconds?

[David Currey]

I am looking into purchasing a few NPN seconds with the intention of attempting to get them re-performing or offer a reduced payoff to settle. I will be looking for houses with the first lien current. I understand that foreclosure is a useful tool to get the borrower to surface and talk. I anticipate at a minimum sending out a "Demand Letter" or "Intent to Foreclose" Letter, but in the event that I need to actually go the entire foreclosure route, what states offer the least amount of time to foreclose?

I downloaded a .pdf from realty.trac that shows foreclosure laws and procedures by state. It appears that TX and GA are good states for a quick (2-3 months) resolution – others like NY take a long time (445 day process period) other states have a 365 day redemption period (talk about putting the funds on ice…). Are redemption periods applicable to seconds?

But I am sure that there are variables that don’t show up on a neat little chart that can trip me up. I will be starting off small with a small portfolio of around 3-4 notes to spread out my risk, but I don’t want to get stuck in a state that will tie up my funds for years.

If I was to buy a few NPN second notes in a few states with a performing first – where should I start looking?

What is your experience?

Thanks!