Non-performing Residential Loans

March 23, 2013 5:45 PM

Has anyone figured out how to approach a bank to purchase non-performing residential loans? I've approached a local bank. Although it would probably be in their interest to sell the loans, they don't seem to have a mechanism. I haven't figured out how to crack this nut.
posted by alcahofa to Work & Money (2 answers total)

There is like an entire industry that does this. It is very much a relationship business and not very efficient. You just have not found the right people. That said they are probably more used to people doing this through an LP than as an individual.
posted by JPD at 5:55 PM on March 23, 2013

Are you trying to buy mortgage loans as an individual? The players in the secondary market are generally pretty big; loans are usually bundled and securitized, etc. Here's a summary. You probably won't have much luck approaching banks as an individual wanting to do this. You could try finding a mortgage broker and working through them to get to the bank.
posted by aka burlap at 6:30 PM on March 23, 2013