I am exploring the niche area of acquiring under-performing home loans in bulk as part of a diversified investment strategy. While I understand the basic premise and potential benefits of investing in distressed assets for higher returns, I am keen to dive deeper into the nuances of this approach.

I am particularly interested in the initial due diligence process, risk assessment techniques, and strategies for managing these assets post-acquisition to mitigate risks and maximize returns. Additionally, I would appreciate insights on the typical challenges investors face in this space and effective ways to navigate them.

Could anyone share their experiences or advice on:

Identifying and evaluating potential bulk under-performing home loan investment opportunities? Best practices for conducting due diligence on such investments? Strategies for managing these loans post-acquisition to improve their performance? Any regulatory considerations or pitfalls to be aware of? I am eager to learn from the collective wisdom of this community and understand the critical success factors in this investment strategy. Any guidance, resources, or case studies you could share would be greatly appreciated.

Thank you for your time and insights.