The Right Buyer for Your Mortgage Note

Before selling your mortgage note, it’s important to research several note buying companies to find the right buyer. Visit their website. If they don’t have a website, chances are they aren’t reputable. Also, many offer free consultations so you can call and ask about the company and the note buying process. Only choose a company that is and has been in business for over 5 years.

For many property owners, finding the right company to buy your mortgage notes can be a nerve-wracking experience. In most cases, you don’t get to meet your note buyer one-on-one. Note buyers live in distant cities, so you’ll only communicate via phone or email. So how can you find an experienced and reliable note buyer who will give you the best return on your investment?

What Are Mortgage Note Buyers?

Mortgage note buyers include people and institutions within the secondary mortgage note market. These purchasers provide the owner of a mortgage note with a way to receive a lump sum of cash upfront rather than a stream of payments from a borrower.

When a mortgage note is set up, the initial lender is the owner of the note, and the person agreeing to the loan is the borrower. Once a note owner decides to sell to a note buyer, the buyer becomes the new owner.

There are numerous companies that focus solely on purchasing mortgage notes from lenders. When someone sells a mortgage note, the payments from the borrower do not increase or decrease in price, but they are sent to the new note owner.

Tips On Finding the Right Buyer for Your Mortgage Note 

Experience

A mortgage note buyer that has more than a few years of experience purchasing mortgage notes will likely be more knowledgeable about the process and pricing than newer companies.

Accreditations

Find out if the mortgage note buyer has an A rating (at the very least), and no unresolved complaints. While it is not legally required, many leading note buying companies are accredited by the Better Business Bureau. If the company is accredited with a strong rating and no complaints, you can feel confident that it is a strong business.

Although not all mortgage buying companies have accreditations, these can be helpful in identifying whether or not they have the necessary expertise in purchasing mortgage notes.

Trustworthiness

Follow your gut feeling. Does the company seem trustworthy? Has it completely answered all of your questions? Does it seem to be looking out for your best interest? If you have answered yes to all of these questions, chances are you have found a dependable note buyer. If you don’t feel comfortable with the note buyer, then move on to another.

A trustworthy mortgage note buying company will provide you with a quote without asking you to sign something beforehand. If a company asks you to sign something beforehand, it should act as a red flag that they may not be trustworthy.

 

If you’ve found this article interesting, then you’ll surely be hooked up to the following:

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