What is a discounted note?

When a person or company buys a property it is quite normal for a mortgage to be created by a lender, like a bank.

That mortgage will hereafter be referred to as a NOTE.  If during the course of the note’s  life the borrower quits

making his payments on the note, it is labeled, by the bank, as being in default. From that time on that note is subject

to being sold by the lender that owns the note at the time of default.

 

When we buy these notes we get a substantial discount on the remaining amount still owed.  Thus the note is discounted and sold

for less than what it’s pay-off value would be.  Some of these notes are a great bargain if you have a plan to process them.

Like other markets we invest in, there are times to buy into them and other times when selling them is the smart move.

Currently we are not pursuing the Discounted Note Market.

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