Outside Closings Protect Sellers!

When an investor has performed their research and is ready to purchase a private mortgage note they will ask the seller to deliver original documents and sign the assignment package.  The investor will want these original documents before the funds are released to the seller. A note seller will understandably wonder “How do I know I will ever receive my money once I turn over the documents establishing ownership?”  So the investor wants the documents before the money is released and the seller … [Read more...]

5 Reasons Sellers Offer Owner Financing

Why would a seller allow a buyer to make payments over time for the purchase of property?  Here are five reasons sellers consider financing property rather than requiring the buyer to obtain a bank loan: … [Read more...]

What is Note Seasoning?

“Seasoning” is the term used to describe the amount of time the payer has been making payments. The general rule of thumb is the longer the better, with 12 months or more optimal. That is not to say that a note won’t be sold unless there is a lot of seasoning. It just means the investor will be looking at other variables of the deal that minimize risk. … [Read more...]

What Changes for the Payer?

"So if I sell my private mortgage note, what changes for the Payer?" This is a common question with a simple answer.  Nothing changes for the payer except where they mail the payment. When a note is sold, the terms of the note remain the same.  The payment amount, interest rate, and due dates remain the same. If there is a balloon payment or “bump” payments, they also remain the same.  An investor purchases the note “subject to” the terms and conditions of the note signed by the payer.   The … [Read more...]