An interesting alternative to Short Sales, REO and Foreclosure Auctions is currently available in Nashville Tennessee. Non-Performing Bank Notes can be a great investment and they typically are at a lower cost than foreclosure auction purchases. The notes are secured by Real Property and may be sub-performing or non-performing. For experienced real estate investors, the notes can be "scrubbed up" and made performing or they could simply foreclosed to obtain the Real Property.
- Contact a Broker in your area that are experienced in Note Sales.
- Review the actual mortgage documents that were executed. Verify the balance due, re-payment terms, interest paid to date, and date when the next payment is due. Review and ensure that the lien is in First Position and that it is insurable. Check the delinquent tax status of the property with the Trustee or Tax Assessor. Due diligence is the duty of the buyer, the buyer's attorney and his broker. Make sure you hire a broker, an attorney and do your homework!
- Have your broker perform a Broker Price Opinion on the Real Property and/or order an Appraisal to determine the current fair market value.
- Determine your initial strategy: Offering a Loan Repayment Program or Foreclosure.
- Have the security instrument, the deed of trust, assigned to you, and have the original promissory note endorsed to you. Ensure that the assignment of the security instrument and the endorsement of the note match. Make sure you get physical possession of the original promissory note.
If you want to find out more information or to see what bank notes are currently available in the Nashville area, Contact Steve Jolly at 615-519-0983.