There are a few companies that will purchase mortgage notes but an individual can also sale a mortgage note to another individual. These companies include FNAC USA, Nicholas Dicaro, and The Mortgage Buyer.
All parties named on the mortgage note must be in agreement to sell it in order to claim the proceeds from the sale. This should be done with the advice and council of an attorney.
Mortgage lenders provide the actual money for the loan and take homeowners through the funding/approval process. Mortgage lenders may sell your mortgage to an investment bank after it is funded, and that investment bank becomes the note holder. Any bank that buys your mortgage after it is funded becomes the note holder.
Of course. A person who signs a note and is not on the deed is simply a volunteer. They have volunteered to pay a mortgage on property they don't own if the primary borrower defaults. The owner of the property can sell the property and pay off the mortgage from the proceeds at any time.
A mortgage generally only has one note.
Yes. The mortgage secures the debt. The note is simply a promise that you repay the money. If you sign the note, then you are liable for the debt. The note is simply your promise to pay back the money you borrowed. If you signed the mortgage, and you default on the promises and covenants of the note and mortgage, then the mortgagee (bank) has the right to foreclose on you. The default of mortgage payments are a breach of contract which allows the lender to foreclose on your home.
One can purchase mortgage notes by getting in touch with an agent who specializes in mortgage notes. There are plenty of agents who can assist in the purchase of a mortgage note and advise on the best rates for a note.
The proceeds of the sale can be used to pay off the remaining mortgage.AnswerYou must use the services of an attorney if you want to sell your home and take back a mortgage. The mortgage and note must be properly drafted for your state so that you are fully protected should the mortgagor default and you need to foreclose and take possession of the property.
I am a mortgage broker and the answer to this question lies in the section of the mortgage document entitled: Joint and Several Liability. No you are not responsible for the note. The promissary note is the promise to pay. The mortgage clause will say that any Any borrower who co-signs the mortgage (security instrument) but does not execute the Note is co-signing only to mortgage, grant adn convey his/her interest in the property and is not personally obligated to pay the sums secured by the mortgage... this goes for the signer of the note extending or modifying the mortgage by perhaps getting a home equity line. You are not obligated financially. Are you on the title? That is the question. If you are on the title you own the home without any financial responsibility for the home and both of you on the Title must agree to sell the home, and one without the other cannot convey their interest in the property.
How To Sell Your Mortgage Note:You must first search for a reputable real estate investor either online or in a local directory.Real estate investors, also known as mortgage buyers or note buyers, arethose that pay lump sums of cash to purchase notes such as mortgagenotes, promissory notes, land contracts and trust deeds.These buyers can offer a "Full Purchase Option" which is for the entire note or a "Partial Purchase Option" which is for a specific amount of payments. However,keep in mind that no mortgage buyer will pay full price of the note balance. These investors are looking for what's called "safe yield" on a discounted note. On average a mortgage note buyer is looking to pay 30% to 50% less than the note balance.Looking For A Buyer:Finding a mortgage note buyer is not that difficult if your looking to sell a mortgage note. However, when searching for a buyer, the following tips may help you in your search:Make sure the buyer, broker or locator is willing to help you all the way through the process from start to finish.Never pay to have a quote. A respectable mortgage buyer should offer you a free quote. Many can do this online and only takes a few minutes to complete.Make sure the mortgage buyer is willing to pay for all or most of the closing costs. Some do this, but many do not.Don't hesitate to negotiate for more money.Find out upfront what fees are required.If the offer is not as high as you hoped, be willing to ask for more money. Negotiating is common.
Working as a mortgage loan officer for close to 20 years, typically selling the house you have purchased one year ago, with a high loan to value, will result in you taking a loss after paying realtor fees and other expenses. You should be able to still sell! However, if you have what is known as a hard pre-payment penalty in your note rider or mortgage, there will be the expense paid to the lender to pay off the mortgage early. This can range from 1% of the mortgage balance to up to 6 months worth of interest. If you have a soft pre-payment penalty, the lender does not charge you this penalty for selling the house, only if you refinance for different terms. Check your Mortgage and your Mortgage Note and if applicable, the Mortgage Note Rider. These documents should have been given to you at closing.
Yes. A person who does not own the property but signs the note is simply a volunteer. They have volunteered to pay the mortgage if the primary borrower (the owner of the property) defaults. Signing a mortgage for property you don't own is a very bad decision.
A mortgage note is essentially a promissory note with the property concerned as a security for the loan. Companies that buy mortgage notes include the Texas Note Company, NCR Note Buyer as well as The Mortage Buyer, Inc.