Buying Loans At A Discount <Safe>

Interest rates have risen, making older, lower-rate loans less attractive at "par" value.

An investor needs cash now and is willing to sell their note for less than it's worth. buying loans at a discount

Buying loans at a discount—often referred to as purchasing "distressed debt" or secondary market notes—allows investors to acquire debt for less than its face value. This can occur when a lender wants to liquidate their position quickly or when a borrower’s financial situation has worsened. Interest rates have risen, making older, lower-rate loans

You still collect the monthly interest payments based on the original loan terms. Interest rates have risen

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