Buy defaulted mortgage notes from banks/hedge funds at 30–60% of UPB — foreclose, modify, or DIL for equity.
Banks and hedge funds sell portfolios of non-performing mortgages (NPLs) at auction (Debexpert, LoanMLS, private tape sales) for 30–60% of unpaid principal balance. Buyer's exit options: (1) modify + reperform (sell as RPL for 70–85% UPB, 40–100% IRR), (2) deed-in-lieu → own property, (3) foreclose → own property. Best on residential first liens $50K–$500K UPB in judicial states with equity behind the loan. Requires special servicer (FCI, BSI) to legally collect. Regulated by state licensing (NMLS, CFPB).
Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.
Bankruptcy Code §363 lets you buy a distressed company's assets free-and-clear of liens, at deep discount, in 60–90 days.
Lend to a Chapter 11 debtor with super-priority priming lien — highest recovery, often equity conversion.
Buy unpaid property tax liens from counties (28 states) — earn statutory interest 8–24% + possible property acquisition.
Tax deed states auction the DEED itself (not lien) after redemption expires — buy property for delinquent taxes only.
Cheaper/faster alternative to Chapter 7 — buy assets of failing companies via ABC in 30–45 days.
Buy property/business assets from a court-appointed receiver — clean title, court-approved discount pricing.
Buy litigation-in-progress bankruptcy claims (preference recovery, fraudulent transfer) at 20–40% of face value.
Buy verified claims in bankruptcy or mass tort settlements at deep discount from claimants needing liquidity.