Bad Debt From Banks — Buying

: These entities buy large pools from banks and may "slice" them into smaller assets for individual investors.

: Buyers pay a low percentage of the Unpaid Principal Balance (UPB). For instance, a $100,000 loan might sell for $20,000. Where to Source Debt buying bad debt from banks

: Primarily sell massive "tapes" or pools of debt (often $1M–$2M minimum bid). : These entities buy large pools from banks

: More likely to sell smaller pools or even single "one-off" commercial notes to local investors. 000 loan might sell for $20

: Focus on regional and community banks; they are more accessible than the top 10 national banks.