December 13, 2007
Why read a blog from a "mortgage note buyer"?
I've answered the question hundreds of times in every conceivable social gathering: So what do you do for a living? My answer never gets the kind of response that my friend the neurologist gets (raised eyebrows, obvious fascination) or my engineer friends get. (instant recognition, clear understanding) Instead, when I tell them I'm a "mortgage note buyer", I get the pause, the struggle to digest what I just said, then indifference, or a quick diversion into a discussion on sports or the weather.
Most people are only vaguely aware of the secondary mortgage market. Many times (after the initial awkward exchange mentioned above) someone will say "Oh, yeah - some new bank bought my mortgage and has totally screwed up the servicing...is that what you guys do?" (By the way, the short answer to that question is an emphatic "No".) To avoid going down that road, I've come up with a standardized follow-up response that eliminates the need for additional expanation. I simply say "it's a lot of fun to do, but it's pretty boring to talk about."
Unfortunately for you, the reader, I will talk about it, but just a little. In essence, we buy real estate notes. All kinds. Whether they were originated by a bank, mortgage company, or an individual, one at a time or in portfolios, we will consider all for purchase. We may not be able to make an offer based on the particulars of the deal, but we will give each and every deal our consideration.
If you are reading this, chances are you either hold a note or are involved in the secondary market in some capacity. You understand these concepts, whereas 95% of the American populace does not. Just like any other commodity, mortgage notes have a value, and can be liquidated through a company like ours prior to being paid off by the borrower. Some will be discounted heavily to offset high risk or a low interest rate. Some will trade close to the amount owed on the note. Some are simply not marketable, based on a myriad of risk factors that I will spare you the drudgery of getting into right now.
The thing is, you don't really know what a note is worth until you test the market. Are you holding a real estate note right now? Are you curious what it's worth in the secondary market? Could you use that cash for other purposes? (investments, commodities, tuition, vacation?) Give us a call or fill out our quote request form on-line and we'll let you know. If we can help you get the cash you need, won't it have been worth reading this blog?
Our efforts stay focused on note holders. If you are a note finder, a note
broker, or anyone other than the actual note holder, please do not contact