main heading: mortgage note buyers investors
Mortgage Note Buyers & Investors nationwide,  since 1981   -  Trust Deed Buyers    -   Land Contract Buyers
Mortgage Note Pool Buyers  -    Mortgage Note Portfolio  Buyers   -  Commercial Real Estate Mortgage Loans

glow button    We  Pay  Cash  for  your  Mortgage  Note !    glow button







 A
 B
 C
D
E
F
G
H
  I
J
L
 M
N
O
P
R
S
 T
W

Agreement for Purchase and Sale of Note and Mortgage
This is a contract between the buyer and seller of the mortgage spelling out the purchase price, terms, etc. of the proposed transaction.
 

Amortization
The method by which the outstanding balance of a loan is reduced by making equal payments on a regular schedule (usually monthly). The payments are structured so that the borrower pays a portion of both interest and principal with each equal payment. 

Appraisal
The determination of property value based on recent sales information of similar properties. Depending upon the type of property and note purchase transaction, may require either a 'drive-by' or full appraisal.

Assignment
The process by which ownership in some portion of future payments is transferred from one party to another.  The Assignment Form is signed by the seller at closing, then recorded.

Balloon Mortgage
A fixed-rate mortgage for a set number of years (usually 15 years or more) which then must be paid off in full in a single "balloon" payment at a future earlier date (usually 3 to 10 years from the original date of the mortgage). 

Broker:  Note Broker, Cash Discounter, Note Buyer, Mortgage Broker, Paper Broker 
An individual or company in the business of assisting in arranging funding or negotiating contracts for a client but who does not necessarily advance the funds himself.  Brokers usually charge a fee or receive a commission for their services.

Bulk Purchases    see  Note Pools
The purchase of a portfolio or "pool" of mortgages by an investor, generally as one transaction.

Business Notes  /  Business Contracts     Note:  We do not do these !
Notes arising from the sale of a business from one party to another.  Typically, secured by assets other than real estate.

Buyer:  Note Broker, Cash Discounter, Note Buyer, Mortgage Investor, Note Investor, Note Purchaser 
An individual or company in the business of purchasing or arranging for the purchase of notes.

Cash Discounters
An individual or company in the business of purchasing or arranging for the purchase of notes.

Chattel     Note:  We do not do these !
Security other than real estate; i.e., inventory, equipment, etc. 

Closing Costs
Costs of title search, title insurance, appraisal, recording fees, etc. required for the transaction. May be paid by either the buyer or seller, depending upon their prior agreement.

Closing Statement / Settlement Statement
Also known as a HUD1.  This document is prepared by the title company or closing attorney and details all funds received and disbursed at the time of purchase and closing on the property. 

Commercial Properties:    For Details,   Property Types

Contracts
The written understanding between the parties.  May be a mortgage, land contract, contract for deed, deed of trust, etc.

Contracts for Deed
Similar to a mortgage in that it secures the obligation with the underlying real estate, it differs in that the property has not yet been transferred (deeded over).  Transfer of the deed is contingent upon all terms of the Contract having first been fulfilled.

Credit Application  /  Form  1003   ( Residential Uniform Mortgage Application )
This is the standard, most generally-accepted form used in the purchase of residential properties.

Credit Rating  /  Credit Score
Persons paying on a mortgage are rated by investors according to the borrower's credit- worthiness or risk profile. Credit ratings are expressed as letter grades such as A, B, C, etc.. These ratings are based on various factors such as a borrower's payment history, foreclosures, as well as the numerical credit scores issued by the credit bureaus.

Credit Report
A report on the credit standing of a prospective or existing mortgagor / payor. Used by the investor to help determine creditworthiness.

Deed
A legal, recorded document which shows the transfer of ownership of real estate from the one party to another. 

Deed of Trust
Similar to a mortgage, this is a recorded document that in conjunction with the mortgage note creates a security interest in real property.

Default
The failure to make payments as agree, possibly resulting in foreclosure.

Down Payment
Money paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed. 

Documentation ( Mortgage Documents )   Doc. Checklist
Required documents for all mortgage purchase transactions: copies of note, security instrument, etc. For Details, 

Escrow
The holding of funds and/or documents in trust by a third party, typically an attorney or title company, on behalf of another party or parties.

Equity
The difference between the current market value of a property and the principal balance of all outstanding mortgage loans. 

Fixed-Rate Mortgage
A mortgage where the interest rate does not change over the life of the loan. 

Flips /  Flipping   / ReHabs     Note:  We do not do these !
The practice of buying a property generally in need of repair ( REHAB property ) with the intent of re-selling it at a substantially higher price in the future. Many times, these properties are initially acquired through foreclosure or similiar circumstances and at a below-market price. In many cases, the investor has not yet taken title to the property before re-selling it.

Foreclosure
A legal procedure in which real estate is sold by the lender to pay a defaulting borrower's mortgage loan. 

Good Faith Estimate
An estimate of charges which a borrower is likely to incur in connection with a loan closing for the purchase of real estate. 

Hazard Insurance
A form of insurance in which the insurance company protects the insured from certain losses, such as fire, vandalism, storms and certain other natural causes. 

Interest Only Mortgages  /  Notes
Payments are required on an interest-only (no principal payments) basis for a set payment schedule, with a final, or "balloon" payment at maturity.

Investment to Value Ratio
A ratio used by investors for calculating the amount of their investment to the value of the property, to determine their risk factor.

Junior Mortgages   Note:  We do not do these !
Any mortgage having another mortgage ahead of it, in terms of priority.  A second mortgage is junior to a first mortgage; a third mortgage is junior to both a first and second. 

Land Contracts
Similar to a mortgage in that it secures the obligation with the underlying real estate, it differs in that the property has not yet been transferred (deeded over).  Transfer of the deed is contingent upon all terms of the Contract having first been fulfilled. A land contract usually applies to the purchase of the land only, while a Contract for Deed typically covers structures as well.

Loan to Value ( LTV )
The ratio of the current mortgage balance divided by the current property value. An $ 80,000 mortgage on a $ 100,000 property would result in an 80% LTV. 

Loss Payee /  Loss Payee Clause
An additionally-named insured party to an insurance policy. At the time of closing on a mortgage / note purchase transaction, the buyer / investor is named as a co-insured party.

Manufactured Homes / Modular Homes    For Details,  Property Types

Mobile Homes   Note:  We do not do these !

Mortgage Brokers -  see above:   Broker    

Mortgage Buyers -   see above:   Buyer

Mortgage Investors
Parties buying mortgages and notes for their own account.

Mortgage Portfolios / Mortgage Pools -   for details, see  Note Pools 

Mortgagee - the party receiving the mortgage payments.

Mortgagor - the party responsible for making the mortgage payments. Also known as the "Payor"

Mortgagees Title Policy
A title insursance policy protecting the holder of the mortgage against possible defects in title.

Mortgage / Mortgages
A recorded document that in conjunction with the mortgage note creates a security interest in real property. In some States, referred to as a Deed of Trust or Trust Deed..

Note Brokers  -  see:   Broker    Buyer

Note Buyers  -  see:   Broker    Buyer   Mortgage Investors

Note Investors
Parties buying mortgages and notes for their own account.

Note Pools  /  Note Portfolios     see Bulk Purchases

Note / Notes
The underlying promissory note / obligation to pay.  At times, referred to as "paper"

Owner-financed  -  see:  Privately-held

Owner-held  -  see:  Privately-held

Owners Title Policy
A title insursance policy protecting the purchaser of the property against possible defects in title.

Paper
A general term for the mortgage, note, and related documents.

Partial Purchase  /  Partial Sale    For Details,  Cash Options
The sale or purchase of only part of the remaining payments due on the mortgage note. The Seller receives cash at closing, plus they also receive the residual value, when due, of their portion of  future payments not sold initially. See also  -

Payment Streams
The actual "flow" of mortgage payments:  how much, and when to be received.

Payors
The party or parties obligated to pay on the note and mortgage.  Also referred to as Mortgagor(s).

Pool Purchases:   see  

Privately-held / Private Mortgages 
A note and mortgage taken by the seller or financier of a property, in lieu of cash provided by an institutional lender.

Property Types:     For Details,  Property Types
Determined by appraisal. For properties sold within the past year, generally the lesser of sales price or current appraisal is used. If after one year, current appraised value is used.

Real Estate Contracts
Any document relating to the ownership, transfer or securitization of real property.

Real Estate Notes
Any note or obligation secured by real property.

Recorded Documents
A document filed and officially recorded in the County recording offices, putting all parties on notice as to ownership, etc. 

ReHabs /  Flips /  Flipping    Note:  We do not do these !
The practice of buying a property generally in need of repair ( REHAB property ) with the intent of re-selling it at a substantially higher price in the future. Many times, these properties are initially acquired through foreclosure or similiar circumstances and at a below-market price.  In many cases, the investor has not yet taken title to the property before re-selling it.

Residential Properties    For Details, see  Property Types

Residual Value of Mortgage / Note
When a mortgage / note is sold under a Partial Sale arrangement, the seller of the note is entitled to receive the mortgage back when the terms of the assignment have been met.  The amount of this 'residual balance' may be affected by early prepaypent, default, and other factors. 

Seasoning
This refers to the number of payments made to-date on a mortgage note.  A note where 25 months payments have been made, is said to be "seasoned 25 months."

Second Mortgages  Note:  We do not do these !
A mortgage junior to a first mortgage lien; i.e., put in place and recorded after the recording of a first mortgage. The first mortgage has priority over the second mortgage in terms of repayment in the event of default.

Seller-financed -  see:  Privately-held

Seller-held  -  see:  Privately-held

Simultaneous Closings /  Simultaneous Funding  Note:  We do not do these !
A closing transaction where the property is sold and the seller converts his owner-held mortgage and note into cash all at the same time. 

Title Insurance
A policy issued by a title insurance company protecting the parties against defect in title. An Owners policy protects the buyer; a Lenders policy protects the lender.

Trust Deeds
A recorded document that in conjunction with the note creates a security interest in real property. In some States, referred to as a Mortgage.

Wraparound Mortgages  / Wraps 
A junior mortgage created to "wrap around" a superior mortgage, generally to avoid having to pay off the first mortgage at the time of sale of the property.  Typically, this is done with a second mortgage wrapping around a smaller first mortgage.  If the wraparound mortgage is sold, at which time the first mortgage is paid off, the wraparound mortgage then becomes a first mortgage.

pic - 2 person - selling real estate mortgages notes  
        Contact  us  today - You'll be glad you did !      
                                  
       
 logo triangle: AFR logo American Funding Resources, Inc.  
 Palm Bay,  Florida
Phone:   ( 321 )  549-8410  Eastern time

website:  www.americanfunding.net
handshake, closing the deal










     glow button
pen: writing out check

How much is my
note
worth ?

 Contact us, for a
             FREE  
        no obligation
Quote:
  • or  Call:                  ( 321 ) 549-8410  Eastern time






glow button

stop sign: mortgage notes we don't buy
    What We Don't Do  -      Save Yourself Time !
    Please:   Principals only

     No Note Brokers / Finders      
     No  2nd Mortgages
 

     No  Mortgages  < $ 100,000
     No  MH or Row Homes
     No  Flips or Rehabs
     No  Simultaneous closings



glow button
  • Single family homes
  • Multi-family  1-4 units
  • Multi-family  5 +units
  • Apartments
  • Office  / Retail
  • Commercial
  • Land




glow button