The FDIC conducts loan sales for failed institutions, requiring pre-approval for buyers. 2. Potential Exit Strategies
Obtain a Broker Price Opinion (BPO) and, if possible, a physical inspection to check for damage or vacancy. buy non performing mortgage notes
Investment is backed by real property collateral. The FDIC conducts loan sales for failed institutions,
Ensure the loan complies with regulations like RESPA (Real Estate Settlement Procedures Act) and FDCPA (Fair Debt Collection Practices Act). Investment is backed by real property collateral
Allowing the borrower to sell the property for less than the debt amount, with the investor taking the proceeds. 3. Risk & Due Diligence Checklist
Taking legal ownership of the property to sell it as Real Estate Owned (REO) or hold it as a rental.
Reworking terms (interest rate, term, or principal) to help the borrower resume payments, turning the NPL into a "re-performing" note.