: Debts where the borrower has missed payments for typically 90+ days. Portfolios vs. Individual Notes :
Before purchasing, you must verify the legitimacy of the debt to avoid "buying smoke and mirrors". Buying Non Performing Notes [2026 Guide] - Distressed Pro buying bad debt from banks
: Focus on regional and community banks; they are more accessible than the top 10 national banks. : Debts where the borrower has missed payments
: Primarily sell massive "tapes" or pools of debt (often $1M–$2M minimum bid). buying bad debt from banks
: These entities buy large pools from banks and may "slice" them into smaller assets for individual investors.
: The FDIC holds auctions for non-performing notes from failed institutions, though buyers must be approved first. Due Diligence Checklist