Has anybody ever bought a non performing 2nd note from Wells?

[Pavel Sakurets]

Hi all, has anybody ever bought a non performing 2nd note from Wells or US Bank?

If you did, could you please share who you have contacted? I've spoken to several branch managers and they don't know it and keep telling me that they don't sell them.

Is this true? If yes, I don't understand why they don't sell them; last year my company bought many properties where US Bank's or Well's had second notes and they never redeemed and lost a lot of money.

[Dave Van Horn]

Thanks for the mention @Percy N.

@Pavel Sakurets

I agree with @Christopher Winkler, for individual investors like yourself I tend to think it's easier to go with these servicers, loan exchanges, note funds, or to find individual note sellers.

Acquisitions isn't my department or specialty at PPR but I believe there are about 12 different trade desks at Wells Fargo alone, and out of those 12 or so only a couple deal with 2nd mortgages. Most of these trade desks don't interact with each other, which is more or less standard protocol with such large institutions.

The other thing is, Wells Fargo has various complex entity structures, not to mention they service there own loans as well as loans for about 3,500 investors (which can be an assortment of large players) and they don't always cooperate because they're essentially separate companies.

As far as US Bank goes, it can be just as complicated. Many companies that own notes fly under the flag of US Bank for various reasons so to find the proper trade desk that sells notes in just one area is kind of like finding a needle in a haystack in my opinion. Which is why I agree you're better off with the types of sources I mentioned above or waiting for your current sources to provide notes in your area. Not sure what your endgame here is with buying locally. 2nds can be purchased in any state and if we had stayed local I don't know if we'd be in business for the last decade. I know a lot of what you look for depends on your strategy and business model, but I would suggest try looking outside your area as well to open up your options.

Best,

Dave