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, are
those that pay lump sums of cash to purchase notes such as mortgage
notes, 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:
If the offer is not as high as you hoped, be willing to ask for more money. Negotiating is common.
Calculation Of Doc Stamps on Assumption of Mortgage: .0035 x balance of existing mortgage (assumption)= doc stamps on new note. *Note: You always have to round up to WHOLE $100. For example : Existing Mortgage is $ 70,150.00 , You round it up to $70,200.00. Now, multiply the assumption by .0035 $70,200.00 x .0035= $245.00
As long as you can keep your qualifying ratios under certain thresholds (they vary by loan type and program) you can get another mortgage while you have an existing mortgage. If your qualifying ratios are to high- then you will need to sell or refinance your existing mortgage to get your qualifying ratios within guidelines. Should you have any other questions- feel free to contact Joy Bates, NMLS # 243437 or for California or Texas Home Mortgage Loans go to www.legacyfinancial.com
The purpose of "fall away" FMBs is to ultimately replace an existing first mortgage indenture with an unsecured note financing program or a modernized first mortgage indenture. Information comes from: http://docs.cpuc.ca.gov/published/Final_decision/56311-03.htm
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.
To buy an existing mortgage note all you need to do is contact the note holder / lender and see if they are interested in selling. You would then come to terms on a purchase price for the mortgage note and set up a closing with a local title company. Insist on getting a lenders title policy as part of the transaction.
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.
Calculation Of Doc Stamps on Assumption of Mortgage: .0035 x balance of existing mortgage (assumption)= doc stamps on new note. *Note: You always have to round up to WHOLE $100. For example : Existing Mortgage is $ 70,150.00 , You round it up to $70,200.00. Now, multiply the assumption by .0035 $70,200.00 x .0035= $245.00
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.
As long as you can keep your qualifying ratios under certain thresholds (they vary by loan type and program) you can get another mortgage while you have an existing mortgage. If your qualifying ratios are to high- then you will need to sell or refinance your existing mortgage to get your qualifying ratios within guidelines. Should you have any other questions- feel free to contact Joy Bates, NMLS # 243437 or for California or Texas Home Mortgage Loans go to www.legacyfinancial.com
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.
They now have a house with a mortgage on it. If they cannot, or do not wish to, pay the mortgage, they will have to sell the house, pay off the mortgage, and keep the remainder of the money. The mortgage holder may require you to get a new mortgage on the property, rather than assume the existing loan. You are essentially leaving them what ever value you own of the house.
The purpose of "fall away" FMBs is to ultimately replace an existing first mortgage indenture with an unsecured note financing program or a modernized first mortgage indenture. Information comes from: http://docs.cpuc.ca.gov/published/Final_decision/56311-03.htm
An All Inclusive Deed of Trust (AIDOT) is an instrument made that encompasses an existing encumbrance (mortgage/Deed of Trust (DOT) with new terms irrespective of the existing [underlying] promissory note and DOT.
An All Inclusive Deed of Trust (AIDOT) is an instrument made that encompasses an existing encumbrance (mortgage/Deed of Trust (DOT) with new terms irrespective of the existing [underlying] promissory note and DOT.
foreclosure