Issues in selling notes, which some note buyers couldn’t buy.
First, it is CRITICAL that you deal with a mortgage note buyer who has many years of experience and cares more about helping you solve your problem than he does about making money from your note sale.
Now let’s look at 4 critical factors which can cause problems in selling a mortgage note:
- Borrower performance on his financial obligations
- Value of the property
- Equity position of the borrower
- Terms of the loan
So how is your borrower handling all his financial obligations? Is he making his mortgage payments on time? How about his other payments, has he been making them on time? Poor credit performance of your borrower will cause problems in selling a real estate note.
The better the credit of your borrower, the less risk we will have and the more we will pay. If your borrower has really bad credit, we would look at buying a portion of the mortgage note. Later, when we have more familiarity with the borrower, we will buy more of the mortgage note.
The next factor which causes problems in selling a mortgage note is the value of the property securing the note. If the property appraisal comes in with a lower value than what is owed on the loan, we will look to buy a portion of the note. Or if the appraised value is way out-of-line, we will order a second appraisal.
The loan terms can cause problems when selling a mortgage note. If your mortgage note has a balloon payment due in one or two years… we need to know how the payer plans to make the balloon payment. If the borrower doesn’t have a plan to make the balloon payment, we may modify the loan by extending the current payment amount and removing the balloon.
In summary, we overcome problems that note sellers may have in selling a mortgage note. We can purchase many real estate notes which other note buyers can’t buy… by developing creative solutions to many problems in selling a mortgage note. If you are running into problems when you trying to sell your real estate note, give us an opportunity to resolve the problems. You will not be disappointed!
Questions? Call us at 928-528-8028 and we will help you in any way that we can.
Or, if you want to sell your real estate note, fill out the form below.