Non performing notes

[Scott Miller]

Can someone help explain non performing notes to me?

Just have a general interest in what they are, how they work

Have you had success with them? Horror stories? Success stories?

Please feel free to post your two cents or any knowledge you have on this

Thank you

[Chris Seveney]

Quote from @Anne Abrams:

I just discovered this asset class and searching this forum, I see that most postings are about 10 years old, just the aftermath of the 2007-2008 bubble.

Is it still a viable way to invest in 2024?

 Yes it is a viable option but it is very different than 2008 and also very different pre covid. Like other asset classes, the home appreciation has been a savior for poorly managed NPL's because your downside risk was being protected. Now that home prices have stabilized, every month you hold a NPL it becomes less valuable because homes are not appreciating and time costs money, as well as additional incurred expenses like servicing, FPI, legal etc. (some may be recoverable).

Happy to talk more about it.