selling a mortgage note is not difficult at all!

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http://www.dreamprotector.net/ Selling A Mortgage Note Is Not Difficult At All! Before Selling a Mortgage Note let us first understand what a Mortgage Note is. Mortgage Note is a debt instrument secured by the claim on the title to the specified real estate property as a security for a loan. The contract mentions the name of borrower, amount of the debt or loan, legal description of the property with address, rate of interest applicable and the duration of time which the borrower promises to re pay the debt back to the lender. In the event of any default, the lender had the claim on the property which can be sold and the proceeds from the sale are used to clear the mortgage debt. Unlike promissory note, the mortgage note is registered in the land records immediately after the contract is signed and when the loan or debt is fully repaid, the lender returns the note to the borrower and record a release of the mortgage in the land records. Similar to the stocks and bonds, Mortgage note is a financial instrument having a cash value which can be traded on the secondary market and generally the buyers are investors who are having the capital to give cash and receive the future streams of payments which were earlier being paid to the original owner. To sell the mortgage note it is important to address the following challenges: Appraisal or due diligence to arrive at the best price in market place Lack of title work Property title issue if any Inadequate documentation

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Page 1: Selling a mortgage note is not difficult at all!

http://www.dreamprotector.net/

Selling A Mortgage Note Is Not Difficult At All!

Before Selling a Mortgage Note let us first understand what a Mortgage Note is. Mortgage Note is a debt instrument secured by the claim on the title to the specified real estate property as a security for a loan. The contract mentions the name of borrower, amount of the debt or loan, legal description of the property with address, rate of interest applicable and the duration of time which the borrower promises to re pay the debt back to the lender. In the event of any default, the lender had the claim on the property which can be sold and the proceeds from the sale are used to clear the mortgage debt.

Unlike promissory note, the mortgage note is registered in the land records immediately after the contract is signed and when the loan or debt is fully repaid, the lender returns the note to the borrower and record a release of the mortgage in the land records. Similar to the stocks and bonds, Mortgage note is a financial instrument having a cash value which can be traded on the secondary market and generally the buyers are investors who are having the capital to give cash and receive the future streams of payments which were earlier being paid to the original owner.

To sell the mortgage note it is important to address the following challenges:

Appraisal or due diligence to arrive at the best price in market place

Lack of title work Property title issue if any Inadequate documentation

Page 2: Selling a mortgage note is not difficult at all!

In the market there are professional Note brokers who bring the buyers and seller of mortgage note together for a fee. The fee is primarily a difference of how much a note is worth of and what a seller is ready to accept. For the said fee the note broker provides valuable services in addressing the above mentioned challenges and being more informed on the market dynamics can sometimes offer even a higher price to the seller or work out programs to provide the best value to the seller.

Selling a Mortgage Note can be a simple process when you work with an experienced buyer. Knowing the right people makes things easier.