Quality Mortgage Notes: The Secret to Being a Great Note Buyer or Seller
We've learned a lot about mortgage notes over the years and have applied it to the way we do business. Buying and selling notes is detail-oriented because it has to be. Mortgage notes are the average person's central investment, and need to be handled with care in both a legal and procedural sense. We've learned, however, that note quality is one of the biggest factors involved in ensuring a smooth, fair deal.
We ensure mortgage note quality in many ways, but the "front line" of our method is set criteria about the notes we buy - and notes we don't buy. Here's a quick list of some of what we don't deal with, and why.
Third Party Note Brokers, Finders and Other Agents
We don't deal with third party agents on your behalf. We want to talk to you. First of all, we want to make sure you get value for your money, and we want accurate information. A third party agent is less invested in the actual property value - he just wants to make that sale. Even reputable agents lead to additional expenses and complications. Instead, our staff will guide you through the process. We are only interested in the note from the seller's perspective, and we only deal with the legal note holder.
Second Mortgages, Complex Encumbrances and Bad Debts
One note, one property. Follow that rule and we can do business. Otherwise, due diligence becomes a hassle for everyone. If your note is on a property that supports other debts (including second mortgages) the ratio of effort to payoff won't work well for either of us. A wraparound mortgage is an exception to this - it speeds things along considerably. Naturally, we also don't take a note if the borrower isn't paying, either.
Simultaneous Closings and Funding and Flips
Unfortunately, simultaneous closings have a bad rap because in the volatile real estate market, people have used it to enable fraud. We want full confidence in your note's financial status so that we can process your note easily and bring in the cash you need. We want a note with a history - the more seasoning it has, the better. A quick flip or simultaneous transaction gives your note almost no history. We can't give you a proper estimate of notes without a history.
Note Creation and Property Purchases
Sticking to our core business allows us to serve you best. We are not mortgagors and we don't just buy properties free and clear, either. We don't create new mortgages ourselves. We're interested in doing a good job at our core business - why drift from it?
Other Things We Don't Do
Get a no-obligation note seller quote from us if your mortgage note doesn't fit into any of the above. Contact us if you're not sure whether or not your note has any of the conditions above. This page will also give you another short checklist of what we will and won't do - but always remember that these rules will keep your note transaction smooth and simple.
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