We only require 1 payment to be made by the property buyer in order for you to sell an unseasoned note to us. While this isn’t the case with many mortgage buyers, it is with us. Although technically the note is not an unseasoned note if it has 1 payment, many mortgage buyers still consider these unseasoned notes.
In short yes, a private mortgage buyer will buy non seasoned note or as some call then unseasoned notes? The discount rate will be a bit higher from the mortgage buyer, particularly if the owner financed borrower’s credit is not stellar. We only need 1 payment to have been made on the mortgage note to purchase a note. What nearly all (all I know of) private mortgage buyers won’t do is a simultaneous closings note purchase, primarily due to the government wanting to classify such mortgage note purchases so that they fall under the RESPA laws. This results in all kinds of additional regulation and paperwork and licensing. And since simultaneous closing note purchases are a good bit riskier, note buyers pretty much avoid them like the plague.
Below are the 3 most asked buying and selling notes questions I get as a mortgage buyer.
1) How does the process of selling a mortgage work? The process is pretty simple. We just get answers to a few questions like the terms of the note, information on the property, information on the mortgage holder’s buyer(s) and what their goals are.
2) Can I sell an unseasoned mortgage note? The answer is yes but unseasoned notes carry a bit more of a discount as we have no history of the buyer paying and paying on time.
3) Does a mortgage buyer check credit on my buyer? Yes, creditworthiness of the buyer is important.
I also get asked if we are land contract buyers. The answer is yes.
I hope these buying and selling notes questions and answers were helpful. For additional questions, call us 7 days a week at 1-877-655-5625.
