Will Private Mortgage Buyers Buy Non Seasoned Mortgage Notes?

2010 February 2

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.

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