Nike Dunk Womens Thinking Of Selling A Note Here A

first thing you should know is that private mortgage notes or promissory notes secured by a Mortgage of Deed of Trust are purchased at a discount. The discount is based on two main criteria.
The first is the perceived risk arrived at by 1) A review of the borrower’s credit, 2) The down payment and/or equity in the property, 3) How difficult it would be to sell the property should the note buyer ever have to foreclose, 4) The timeliness of past payments and 5) The seasoning on the note which means how long the buyer has been paying on the note. A higher risk results in a higher discount and therefore a lower price. A lower perceived risk results in a lower discount rate and therefore a better price for a note.
The second is what I call the pure math of discounting a future income stream. The higher the monthly payment and the shorter the period the income stream runs, the higher the price. In other words [link widoczny dla zalogowanych], if you had two notes that were identical in every way but the amortization of one was 15 years with a correspondingly higher payment and the other was amortized over 30 years, the 15-year note would bring a much higher price than the 30-year note. It’s all about the time value of money.
There are a few more important items to be aware of when selling a note. They are, 1) At some point, the mortgage note buyer will want to pull credit on your borrower, 2) The note buyer will want to see proof of at least the last 12 payments and cash payments with a written receipt are not acceptable forms of proof. Sometimes [link widoczny dla zalogowanych], if the note holder deposits the payment into their bank account [link widoczny dla zalogowanych], this will suffice, and 3) The note buyer will want to do a short interview with your borrower to acknowledge their liability and to let them know that the only change for them will be where they will be sending payments.
Knowing the basics of note selling and discounting can make for a much smoother and quicker transaction.
Ron Stone has a note buying business. His company buys mortgage notes. Learn more about mortgage note buying and selling at Commercial Mortgage Buyers or Private Mortgage Buyer

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