Where to find mortgage notes to buy. According to the Mortgage Bankers Association, the U.S. forbearance rate measuring the share of mortgages with suspended payments fell seven basis points to 5.83% last week,
“With more borrowers exiting forbearance in the prior week, the share of loans in forbearance declined across all loan types. Almost half of forbearance exits to date have been from borrowers who remained current while in forbearance, or reinstated by paying back past-due amounts,” said Mike Fratantoni, MBA’s senior vice president and chief economist.”
While forbearance levels have begun to return to those seen in early April, the MBA said numbers remain remarkably high, with an estimated 2.9 million homeowners in forbearance plans.
According to Fratantoni, further improvement will require ongoing recovery in the job market and additional fiscal stimulus, which looks like Congress won’t finish until after January 2021.
Some homeowners will not make it out of forbearance. That presents an opportunity for us to invest in notes and deeds. As note investors, we can help people stay in their homes after “life” happens to them, and we get to make money doing it. That raises an important question: where to find mortgage notes to buy.
Hard money lenders, individual investors, and community banks can auction-off or sell-off mortgage notes (the notes can be current or in various states of default)
Investors can bid on and purchase these notes and start receiving payments from the borrowers
You become the bank and service the loan yourself or hire a third-party servicing company that also deals with late pays.
Paige Panzarello, the “Cashflow Chick,” Founder of The Tryllion Group, Investor/Entrepreneur having done $150 Million+ in real estate transactions; Specializing in Non-Performing Notes. She has been a regularly featured guest on “The Cashflow Guys” podcast, and you can also find her on many other Real Estate and Entrepreneurial podcasts and in the Wall Street Journal as well. She also speaks at various Real Estate Investing clubs and conferences across the country. Paige teaches the “Building Wealth with Notes” Workshop that drills down into the details of how to successfully buy Non-Performing Notes, create passive income, and mitigate risk. www.CashflowChick.com/training
Surviving the crash of 2007, Paige knows how “life happens” every day. Her passion is to help people build wealth, secure their financial future, enjoy life, and be ready-not broken! Whether it is improving communities one house at a time, assisting borrowers in staying in their homes, or working with other investors to learn a new way to earn higher investment dollars for their retirement years, Paige potentially dedicates herself and her business to helping people improve their lives in every way. For more information got to www.CashflowChick.com