Note Investing - Amazing Stories

[Chris Seveney]

When investing in notes, we all have those deals which are “head scratchers”. Interesting to hear your story. I have many to share (including offering a non paying borrower who hadn’t paid for over a year a free house in exchange for her deed which she refused), but I will leave that one for another day.

My head scratcher was a borrower who had a $75,000 home and a $30,000 mortgage. The borrower was not paying and ended up with a clogged pipe. In lieu of calling a plumber he let the basement fill with water and moved across the street. When all was said and done by not calling and paying the $150 for a plumber to unclog the pipe it ended up costing him $45,000 in lost equity as the house was taken back.

The house was worth less than $30k because of all the damage. He lost all that equity which even if he continued to not pay and house was foreclosed upon he would of received the balance of equity

Goes to show common sense is not so common so expect anything in the note business.

What’s one of your stories?