What You May Not Know About Your Mortgage Note
by Frederick Webb
By now, many of you are already somewhat
familiar with private mortgage notes and how they are used to help facilitate
the sale of a property. You may also know that there is a whole industry out
there where note investors are in the market to buy your mortgage note.
There are many reasons why people create mortgage notes in the first place. They
include helping a buyer who may not qualify for the full amount of the loan
needed to buy the property or they may be a relative. Sometimes property sellers
are willing to create mortgage notes because they help to move a property
faster. They also can be an opportunity for the home seller to earn a higher
interest rate than other investment vehicles.
Sometimes, however, notes can go bad. There is always the risk involved for the
property seller that unforeseen circumstances can cause the buyer (the payor on
the note) to fall behind on payments or totally default on the note altogether.
What do you do then?
What you may not know, however, is that when, and if, a mortgage note goes bad
there may still options for you to sell it. There are investors out there who
are looking for delinquent mortgage notes too.
The number of investors who do buy delinquent mortgage notes are not as numerous
as those who buy performing notes, but they do exist. There is help for you. The
best thing to do if you are holding a note gone bad is to use the services of a
note broker that has relationships with buyers of delinquent notes.
No one can know the future nor can they control it but if you find yourself in a
situation where a note you have created has gone or is going south, reach out.
There is help for you and there is life after a note gone bad.
About The Author
Copyright 2005
Frederick Webb is a Certified Cash Flow Consultant and Co-Founder of Webb
Funding Group, a debt instrument brokerage firm he runs with his wife. Webb
Funding Group can be reached at www.mortgagenotecash.com.
wfg@mortgagenotecash.com
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