Mortgage Note Articles
Below you will find a collection of the best articles about seller held mortgage notes, deeds of trust and land contracts.
Are you unsure of how the mortgage note selling process and need to learn more before you proceed? We can help!
January 18th, 2012
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Looking for commercial mortgage note buyers or information on how to find the best company? click here...
December 19th, 2011
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Selling mortgage notes can be a tricky business, which is why it is important to deal with a respected company. If you would like more information on note buyers, click here...
November 20th, 2011
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Are you considering a career as a note buyer or looking for someone to buy your mortgage notes? Before making any moves, you are going to want to read this!
October 20th, 2011
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Looking for a solid source of income during a down economy. For information on how you can make money buying and selling mortgage notes, click here...
September 14th, 2011
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Are you in dire financial straits? Do you need help selling a mortgage note?
August 11th, 2011
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Are you new to the note buyer business and confused by the terminology used in the business? If you are note buyer in need of assistance,
July 25th, 2011
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Are you trying to find a list of mortgage notes for sale? If you are note buyer in need of assistance,
June 20th, 2011
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Commercial mortgage notes represent an opportunity for profit from a bad situation. These notes relate to office buildings, apartment buildings, mobile home parks, businesses, shopping centers, government buildings, and parking lots. Commercial note mortgage buyers are difficult to come by and finding a reputable one can be the start of a long-standing relationship.
May 13th, 2011
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A mortgage note is the promissory note associated with the mortgage loan. It serves as a written promise by the mortgage holder to repay the specified amount of money plus interest. The mortgage itself pledges the property title as security for a loan, while the mortgage note lists the specifics of the debt and interest rate and obligates the signer as responsible for repayment. Seller-held mortgage notes can be purchased by a full or partial note buyer.
Aprill 11th, 2011
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A mortgage note is a very important component of a mortgage loan. It is a written commitment to repay the loan principal amount plus interest at a certain rate and within a certain period. A mortgage pledges the title to the property as a form of security for the loan, while a mortgage note establishes the debt amount and interest rate and obligates the signer to make the repayment. It is possible to buy and sell mortgage notes without much effort.
March 1st , 2011
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Commercial mortgage note buyers are optimistic that the real estate market will continue its slow and steady recovery. Some are even preparing to expand their operations by offering cash flow options that are more competitive and including additional real estate instruments in their list of accepted products. They have a close eye on the market and rely on decades of expertise in the industry to steer their organizations in the right direction.
February 2nd , 2011
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An REO property stands for a real estate owned property. After a property is not successfully sold at a foreclosure auction, a lender such as a government loan insurer, bank, or government agency assumes ownership. The outstanding loan amount serves as the opening bid at a foreclosure auction. If no bidders are interested, the foreclosing beneficiary legally repossesses the property. REO pools are groups of REO properties and investing in them is similar to investing in wholesale real estate properties.
January 4th , 2011
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A note buyer is a person that seeks out a seller that is currently receiving monthly payments and offers to purchase individual notes from them. If and when sold, the payments will then begin to go to the buyer. It is a note buyer’s responsibility to explain all the options that are available and present a clear picture, while providing all the necessary information to help a person make a rational decision.
November 8th , 2010
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Mortgage notes are the documents that represent the homeowners’ promise to repay the loan according to the outlined conditions and terms. This may also be used to represent that cash value, or original loan amount, of the mortgage loan. When taking out a home-loan or refinance loan, a person will sign both the note and a deed of trust. These two documents together will establish the total debt for the house, and the lender’s security in the home, though there are many different types and variations of these loans that should be considered.
October 15th , 2010
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Mortgage pools are groups of mortgages that are sold to investors. The mortgages in these pools will share both similar interest rates and maturity rates. These note pools make for very attractive investment opportunities due to the fact that that mortgage pools will generate income from the interest earned off the mortgages, and also due to their high liquidity.
September 13th , 2010
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What do you think will get the best deal for your mortgage note? No, it is not interest rate or value of the sale. It is the note buyer who will buy your note. Note buyers purchase a wide variety of mortgage note products. It can be pools of notes, pool of reo, single notes, performing notes, first liens, balloon notes, full or partial purchase, mortgages, trust deed and land contract.
June 24 , 2010
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As mortgage note buyers we frequently get questions about where to start with seller funding. Depending on your point of view it can either look incredible difficult or dead simple. Some people treat two party contracts as the simplest thing in the world, while others are terrified of missing an obscure point of law.
Apr 28 , 2010
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2010 continues to be an interesting year for mortgage note buyers. This April, economic and real estate news focused on the role of deception in the economic meltdown. The best known instance is the federal government's investigation of Goldman-Sachs – specifically, the accusation that the firm knowingly sold real estate based investment products that were doomed to failure in order to short sell and profit.
Apr 28 , 2010
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One of the most common questions we get about seller held mortgage notes is what factors come into play to determine their value. We often get this question when the note is part of an inheritance or other situation where the lender isn’t the person who originally arranged the note, but even people who were there from the start can get confused as to what really matters when it comes to valuing their note.
March 30, 2010
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Compared to working through a financial institution, seller held mortgage notes, deeds of trust and other seller-funded instruments have several advantages. When times are bad, as they were through 2008 and 2009, seller funding allows you to fine tune a mortgage for a specific borrower, bypassing some of the problems in the market.
March 16, 2010
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It’s easy to think of the real estate market as something focused on long term commitments, and in many cases that’s practical for buyers interested in settling down in a home or using a commercial building as a decades-long investment, but the last housing bubble has made people think twice about carrying a mortgage from one economic era to the next. How do you know you’re not going to stumble into trends that damage your property’s value?
March 4, 2010
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According to the Wall Street Journal the Fed isn’t too concerned with the housing market. Citing improvements ahead of schedule the Federal Reserve Bank remains on track in its plan to stop purchasing mortgage backed securities in March 2010. According to Federal Reserve Bank of Dallas President Richard Fisher, no extra intervention is needed to keep interest rates under control. But is the market really getting back on its feet and if so, what does that mean for people..
February 28, 2010
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To say that 2009 wasn't the best year for mortgage notes would be an oversimplification. If you chose to buy a seller-held mortgage note during this period you may have tapped into some unprecedented opportunities by identifying the advantages of private notes in a less than ideal economic climate.
January 15, 2010
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The Federal Reserve is forecasting higher mortgage rates by spring of 2010. This is excellent news for anyone considering investing in or selling a private mortgage note. Despite a few discouraging 2009 indicators, it appears that the real estate market is showing the first signs of real recovery as institutions grow more confident in their ability to profit from real estate notes. As their prospects improve, so will those of private note holders.
January 15, 2010
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The Federal Housing Administration (FHA) is reportedly considering tighter rules for qualifying homes under its program. These include typing payments schedules to credit scores and increasing down payments. Changes like this are sure to influence institutional mortgage rules. Currently, the market is in the midst of a seeming contradiction, where oversupply should dictate a buyer's market, but cautious policies effectively restrict many would-be home buyers from actually taking advantage of this due to increasing restrictions.
December 7, 2009
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Seller held mortgage notes, trust deeds and other real estate instruments work a little differently than counterparts issued by large institutions. An institutional mortgage functions according to consensus standard laid out by the industry. These standards aren't always logical and don't do right by everyone, but they're fairly consistent across reputable financial institutions.
December 7, 2009
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We're about to close one of the most interesting years in real estate market history. 2009 has been an exciting, frightening time for note buyers, mortgagors and anyone else managing a mortgage note, deed of trust or similar instrument from any angle. What can we expect over the next year? It's hard to judge. The recovery has been an uneven one, influenced by local markets, government action and fears of a relapse into failure. It's safe to say that caution is the buzzword for mortgage notes in 2010. Here's how it might manifest:
December 7, 2009
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With the real estate market in flux it's important to make the right decisions when you decide to sell your mortgage note, deed of trust or land contract. There are so many mortgage buyers online that it helps to have a clear idea of what to look for. The basic rule is the same as it is for almost anything else: If it looks too good to be true, it probably is. Good note buyers who know what they're looking for and have a great deal of legitimate experience can make surprisingly high offers, but that's because they have the ability to manage purchased notes efficiently.
November 17, 2009
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California and Florida were particularly hard hit by the collapse of the real estate bubble in 2008. Massive divestment followed a wave of foreclosures, and both states are still reeling from the results. As we close the book on 2009 and the market slowly recovers, it's time to ask a critical question: Should we invest in real estate from these states again?
November 17, 2009
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On October 19th, 2009, broker and investment bank Keefe, Bruyette & Woods (KBW) cut price targets for GSEs Freddie and Fannie to zero. This coincided with a 22% tumble in value: a disastrous day. KBW said their common and preferred equity was worthless in an accompanying report. Their analysts urged Washington to set them up as poisoned asset holders "Bad Fannie and Bad Freddie," killing them off as viable actors in the market.
October 31, 2009
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Investing in seller-held mortgage notes can be intimidating, especially with the real estate market in turmoil. Remember, however, that while the titans of mortgage investment rise and fall based on national conditions, your basic unit of investment - the individual property - is dependent upon local real estate market conditions, not the overall national climate.
October 31, 2009
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The housing market can be uncertain, but there's one constant: Everybody needs a place to live. That means that even though one part or another of the housing market may rise and fall according to changing demand, the demand across all segments is based on demographic factors: how many people need a place to live and the living arrangements they prefer.
October 31, 2009
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Not long ago, people believed that large financial institutions were the safest trustees for their investments. Now we know better; the collapse of CDOs (collateralized debt obligations) under the weight of toxic mortgages revealed the mixture of ignorance, avarice and false hopes that triggered the global recession.
October 06, 2009
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"Sell my note?" The thought might be far from your mind now, but if you possess a seller-held mortgage note, trust deed, land contract of other property instrument you should give some deep thought about the conditions under which you're prepared to sell it. Look beyond emergencies; many people sell mortgage notes to provide immediate financing for a bigger dream. Here are five reasons why you might want to sell your mortgage note:
October 06, 2009
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As seller financing gets more popular, home owners have been jumping into private mortgages, but without proper planning, these eager sellers are bound to encounter problems. The first rule of negotiating seller financing is to always do a thorough investigation of the borrower's credit, but what else do you need to do? The following four tips are be no means a complete guide, but they should at least start you off in the right direction.
October 06, 2009
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Most people know the basic rules of thumb for underwriting mortgages. The borrower's monthly payments and other debts shouldn't exceed 36%, income regularity is critical and so on. We all know what happened when institutions decided they didn't need to find proof about this critical information.
September 04, 2009
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According to Bloomberg single family home starts rose in July 2009. That's good news, right? Well, that may be true for the home building industry but many analysts wonder if this surge makes sense in the face of the US enormous single family housing supply. Some expect single family construction to have a sharp, painful confrontation with reality when home buyers realize they already have their pick of homes.
September 04, 2009
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How do we calculate the value of your mortgage note? We consider a large number of factors. Once you decide to sell your note and request an estimate that touches off a thorough investigation process that ensures that you get the best fait value. Beyond raw equity, we look at your note with the following factors in mind:
September 04, 2009
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Before the housing mortgage crisis seller-held mortgage notes were not well know, and confined to a small group of investors and real estate agents. People were reluctant to get involved with seller-held notes because they assumed that the mainstream mortgage industry as managed by banks was fundamentally sound – there was no need to look elsewhere.
August 12, 2009
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There are whispers throughout the media that the real estate market is on the mend. Investors are starting to trade mortgage backed securities a little more confidently. Freddie Mac bought back some of its subprime debt, indicating that they intend to at least recover their value, if not cultivate them. Does this mean that it’s time to stop looking at direct, seller-financed investments in mortgage notes? Should you just rush into the stock market and buy into real estate as investment instruments again?
July 31, 2009
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Before the housing mortgage crisis seller-held mortgage notes were not well know, and confined to a small group of investors and real estate agents. People were reluctant to get involved with seller-held notes because they assumed that the mainstream mortgage industry as managed by banks was fundamentally sound – there was no need to look elsewhere.
July 31, 2009
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Summer 2009 is a chaotic time for the mortgage market. Rates keep bouncing up and down. Investors and consumers are both waiting for the real estate market to recover and jumped on the slightest sign of market health. Then of course, the Fed releases indicators and other statements that are more cautious, and the market responds with a mini-panic.
July 29, 2009
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As of the time of writing (June 29, 2009) it looks like the housing market is at a crossroads. President Obama and the Fed both say that the worst of the recession is over and the housing market is starting to respond – but that response might be a bit premature. Loan rates have surged this week, leading to a new worry: The investment sector's enthusiasm may exceed the average borrower's ability to pay. This top-down influence highlights the need for alternatives like seller financing.
June 03, 2009
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This article is going to sound self-interested because we buy mortgage notes, but our advice – that you should plan your seller financed note as if you'll eventually sell it – is in your best interest too. There are two big reasons to enter into seller financing with this attitude, and a few characteristics to keep in mind if you're going to follow this principle.
June 02, 2009
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Let's talk about balloon payments. Balloon payment arrangements are a routine practice in commercial real estate and more common with seller-held mortgage notes, deeds of trust and other real estate instruments but when it comes to residential properties, both the private lender and borrower may be unaware of the potential benefits and problems. One of the great things about seller financing is that you aren’t really stuck to a lending "template," so balloon payments may be a viable possibility.
June 01, 2009
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Who's interested in borrowing on seller financed mortgage, deed of trust or similar arrangement? If you decide to manage your own mortgage note you'll be dealing with a more educated, real estate savvy group as a rule; many people don't know that seller-held borrowing options exist, or if they do, aren't quite sure of their advantages.
May 26, 2009
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The real estate market in 2009 is pretty uncertain. There are signs of recovery, but these have taken the form of increased sales, not higher housing prices. Is this just a bump created by adventurous speculators, or an honest increase in basic consumer demand? One thing that is certain is that many current homeowners are hesitant about buying to "move up" to larger homes or homes with better locations. In many cases the desire is there, but hesitant buyers want a sense of increased economic security by getting a more flexible loan. When the new purchase would be conditional on the sale of their own home, hesitancy from other buyers is also a factor.
May 26, 2009
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As the economy recovers from the subprime housing crisis we’re learning more and more about the cavalier way many institutions handled their clients’ mortgages. Despite the pain and frustration this has caused, it’s led to one ironic advantage for desperate homeowners facing foreclosure. In many cases, lenders lost the original promissory note in the rush to repackage and resell mortgages, leaving them with no direct proof they’re actually entitled to foreclose.
May 22, 2009
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There’s been so much in the news about residential mortgages in 2008 and 2009 that it’s overshadowed the other core element of the real estate market: commercial properties.
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Real estate appraisers are scrambling to adapt to a major policy shift from Fannie Mae – and at DMO Direct Funding we’re getting ready for what could signal a major shift in business.
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As you may know, seller-held mortgage notes (including trust deeds and similar legal instruments) provide opportunities for borrowers who can’t get the terms they want out of traditional lending institutions.…
March 19, 2009
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If you’re interested in real estate, finance or whether the US economy is going to survive the recession, chances are you’ve heard of the TARP. TARP is a federal program and was the largest chunk of the 2008 bailout cycle…
March 19, 2009
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Even though the housing bubble burst in 2008, it doesn’t mean that mass foreclosures are hitting every community in America. There are still communities with stable housing markets out there. Investing in them can help make…
March 19, 2009
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Everybody hates foreclosure. Banks hate it because it represents a loss, an intelligence failure on their part and possession of an asset that won’t make them a cent until they move it again…
March 19, 2009
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Like any other investment, you need to treat a seller-held mortgage note with care. If your paperwork is missing or your information is inaccurate, you may be in for a nasty surprise on two fronts…
February, 2009
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On February 26th, 2009 Fannie Mae sold $15 billion in two year notes. Now that it’s back by the federal government the GSE seems to have actually become the safe haven that investors e…
February 26, 2009
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Across the US the real estate market is cooling down. It’s not just that it’s harder to get a mortgage; people are worried about their savings and jobs and don’t want to be caught in transition…
January 1, 2009
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The post-subprime age is an extreme buyers market. There are plenty of homes, but too few people to purchase them. Unlike other buyers’ markets, however, this one has been created…
January 2, 2009
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One of the big advantages of a seller-held mortgage is that the holder chooses who he wants to lend to. This might seem risky but…
Sept 23, 2008
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If you hold a mortgage note you might feel like patting yourself on the back right now because of recent volatility in the conventional mortgage market. If you’ve…
Sept 23, 2008
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Sept 03, 2008
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Sept 03, 2008
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Sept 03, 2008
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July 21, 2008
In my last article on seller-held mortgage notes I talked about how seller-financed mortgages can make it easier for you to sell real estate.
June 30, 2008
To help note holders out we've compiled a list of the more difficult terms used in real estate and their definitions.
June 26, 2008
To help note holders out we've compiled a list of the more difficult terms used in real estate and their definitions.
June 19, 2008
Doris explains why now is a great time to consider seller financing
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June 15, 2008
To help note holders out we've compiled a list of the more difficult terms used in real estate and their definitions.
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