Modifying NPN's

[Andrew O.]

So I'm doing a lot of research regarding buying notes, haven't bought one yet, but it looks like it could be a bit of fun.

I was checking out some loans on various websites (I'm sure these aren't great deals, same with finding house on websites) as a way to familiarize myself with different aspects of loans, I figured I'd stick to performing loans, could just hold for a decent return, or maybe tweak them a bit and create a little win-win situation.

Then I'm seeing these heavily discounted 1st lien NPN's, now I can see a great opportunity in modifying these, allowing someone who wants to to remain in their house for a lower monthly, and since the note is heavily discounted creating some nice cash flow for my money. Now I know each note will be different, but how much success are people having on this type of a strategy?

I realize with a low enough LTV 1. They may be inclined to work with you to keep their house. 2. You can either get a healthy profit from proceeds of a short sale or foreclosure, 3. End up with a property for a cheaper price. At what point can I ask for an address to do my due diligence? When a loan is listed, or do I have to be somewhat under contract (which seems wrong).

I'm pretty happy I have my head in the game, just need to confirm a few things before doing a cheap-ish (sub $20k) run.