Can you Buy FHA Non Performing Notes from Quicken Loans

[Daniel Claroni]

Hi Everyone,

I've got a fairly specific question that I can't seem to find the answer to anywhere. Does anybody know if it is possible to buy an individual non-performing FHA note from Quicken Loans? If so, how can I go about starting that process?

Here is the scenario I am looking at:

- There are about $5k in tax liens on the property and about $5k in other liens

- The current owner has an FHA mortgage from Quicken Loans but has no money to pay the mortgage or liens.

- I don't know exactly how much is owed on the house, but I would think about $100k+. 

    - I think the property value is about $100k in its current condition, and the property is being short sailed

- Rent can be around $1200 to $1300 after repairs

- I'm not sure about repair costs yet, but will have a better idea soon (I've done my analysis assuming $20-$30k)

Does this situation even make sense for me to go in and buy the note if it is possible? I'm thinking yes because I think there is cash flow potential (~6% ROI) even if I just buy the property outright, but buying the note might offer a better deal. Then I would also have to go through foreclosure and encounter those costs. I am pretty new to this though so I'd love to hear your thoughts.

What are your thoughts?

[Chad U.]

The answers to your question have already been given above. Non performing FHA loans are not sold off individually, rather in bulk typically to other banks and hedge funds.