Debt Consolidation In Edmonton Debt Consolidation In Edmonton

Find out more on Debt Consolidation In Edmonton Now!

Friday, February 27, 2009

Buying Defaulted Mortgages - Don't Focus On One Exit Strategy

By Dean Engle

I had a conversation with a new Note Buyer the other day, and he told me that he was launching himself into buying defaulted mortgages after spending a long time wholesaling properties.

When he said to me "Dean, the reason why I want to get into buying defaulted mortgages is not only for the cash flow, but I want to keep these people in their properties. This is what worried me.

I do admit that Humanity counts, don't get me wrong. But...

Make sure you are looking at the bigger picture.

One Exit Strategy Is Not Enough When Buying Defaulted Mortagages

It just won't work.

Even if you want to pursue one exit strategy for the defaulted mortgages that you have just purchased, you can't. (in this case, he thought that he could generate cash flow by re-performing all the notes he bought by modifying them.

Mulitple Exit Strategies Are Need When Investing In Defaulted Mortgages

In order to invest successfully in defaulted mortgages, you need to be like Rafael Nadal.

Nadal can do it all. He has a great serve, an awesome forehand, and can play an excellent game on both the grass and clay court.

Follow the same approach when buying defaulted mortgages. Learn how to pursue MULTIPLE Note Buying Exit Strategies at once.

Don't get stuck with just one note buying strategy.

Using Foreclosure as a Buying Defaulted Mortgages Tool

One useful tool to get a borrower to cooperate with you in getting a loan modified can often be to start a foreclosure action.

Why?

Because for someone who has been missing payments regularly and hasn't been current for a while, sometimes a wake-up call with a foreclosure notice (combined with a helping hand from you to help them with a loan modification) is what prompts them to get their act together, take control of their situation, and to work their way out of their delinquency.

Be careful not to fall into the same trap as the investor I talked to.

Don't think that 1 Exit Strategy to your Defaulted Mortgage Buying business is enough to make you successful.

To do well in the note buying business, know all of your 5 Exit Strategies.

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home