Buying Discounted Notes Apr 2026

Borrowers have stopped paying. These are bought at much steeper discounts, often with the goal of restructuring the loan or foreclosing to take the property.

You collect interest on the full $100,000 balance, significantly increasing your effective yield. buying discounted notes

The loan is secured by real estate, providing a safety net if the borrower stops paying. Types of Notes Borrowers have stopped paying

Foreclosing on a non-performing note can be expensive and time-consuming. The loan is secured by real estate, providing

Buying discounted notes allows you to act as the "bank" by purchasing existing mortgage debt at a price below its face value. This strategy can provide high-yield passive income or a path to acquiring property through foreclosure. How It Works

AI responses may include mistakes. For financial advice, consult a professional. Learn more Should You Only Buy First Position Notes? - BiggerPockets