A mortgage note is simply a mortgage in which the person receiving the monthly mortgage payments is a private individual rather than a traditional lending institution like a bank, credit union, or mortgage company. The mortgage note, then, is basically a lien against the property that is, in turn, the collateral for the note. Sometimes, though, the holder of the note is better off with a large lump sum instead of the spread-out payments. So let’s look a little closer at what a mortgage note is and how to sell yours in Phoenix.
The two main reasons for the rise in private mortgages are stricter lending requirements and not-so-good credit scores – mostly as a result of the recent recession. In addition, during that recession, quite a few properties were abandoned and, as a result, became distressed, which made it nearly impossible to get traditional mortgages to buy them because they wouldn’t have passed the inspections. Private lenders then stepped in to fill the gap.
Although a mortgage note can be an easily liquidated asset, there are certain risks. First, because the note holder is acting in the same role as a bank, that person assumes the same risks a bank would. There is, of course, the benefit of earning interest, but there is always the potential for the borrower to default. So here are a few questions you need to ask if you’re trying to decide between continuing to hold the note or sell it in Phoenix:
One of the great advantages of owning a private mortgage note is that you can usually easily liquidate it by selling it to a company that specializes in such purchases. You can sell the entire note or a portion of it depending on your financial need. Common reasons for selling a mortgage note include:
Owing to the increase in private mortgages, there are now many investment businesses in the secondary mortgage note industry willing to purchase your mortgage note. If you do decide to sell your mortgage note in Phoenix, here’s what the process involves.:
There actually are no constraints on what amount of the note you can sell. It can be the entire mortgage note, a specific amount now and then payments again later, or a percentage of each scheduled payment. So selling a mortgage note in Phoenix is fairly complex and can be somewhat confusing. However, we can provide the assistance you need.
Buying a home is a major decision, and it’s not uncommon to experience buyer’s remorse after making such a big investment. It’s easy to get caught up in the excitement of purchasing a new home, but it’s essential to take the time to carefully consider your options before signing on the dotted line. This article […]
Selling your house can be a stressful experience, and discovering termite damage only adds to that stress. Termites are a common problem for homeowners, and if left untreated, they can cause significant damage to your property. However, selling a house with termite damage is not impossible. In this blog post, we will discuss what you […]
Real estate has been, for so long, providing a primary means of survival to humans. Being a primary sector, the demand for workers is constant. As a result, the real estate industry keeps growing, and many people want a piece of it. For instance, you can easily land real estate jobs on reputable aggregators like […]
Unfortunately, foreclosures are a regular occurrence, and many Arizona homeowners face the possible foreclosure of their homes. This article will walk you through the foreclosure process and offer some options or steps you can take to avoid foreclosure. What Is Foreclosure? Foreclosure is the legal process of a lender who attempts to recover the amount […]
