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Frequently Asked Questions
We can solve your Real Estate Financing Problems!
How can I tell if my mortgage is salable?
We look at two variables: the Loan-to-Value Ratio (LTV) and the size of the original mortgage relative to the total of all senior loans/liens. The LTV should not exceed 80% on single-family owner-occupied homes, 75% on residential rental property, and 50% or less on unimproved land. The total amount owing on all senior loans/liens should not exceed three times the current balance of the original mortgage. If you want to sell a second mortgage of $50,000, the first mortgage should have a balance of $150,000 or less.
What exactly is LTV?
LTV, Loan-to-Value Ratio, is a simple formula used to evaluate the percentage of collateral in a property. LTV equals the total collateral in a property. LTV equals the total amount owing on all senior liens plus the current balance of the note divided by the current market value.
Can I sell any type of mortgage?
Yes! We will buy paper on properties even though there is a strong possibility of default or if resale of the subject property could be potentially difficult or take too long to sell. Additionally, we would even be interested in properties such as car washes, gas stations, churches, and the like.
How much can I expect to get for my mortgage?
The terms of your mortgage or Trust Deed affect the amount. When you contact us, we'll help you evaluate your mortgage and determine how much cash you can expect.
How long will I have to wait for my money?
The process usually takes one to three weeks, sooner if all documentation is readily available. Payment is made at closing when all documents have been signed and recorded.
Do I need to be at the closing?
No. Our office will close the transaction for you and send you a Closing Package complete with simple instructions and a return envelope.
Will you buy second or third mortgages?
Yes! The position of the mortgages is not as important as the LTV Ratio. If the LTV is favorable, we'll buy it.
My mortgage has a balloon payment. Is that a problem?
Not necessarily. In most cases, balloon payments translate to quicker payoffs, which means a greater purchase price for your mortgage note.
I have an interest-only mortgage. Is that a problem?
Not necessarily. We welcome purchases of interest-only mortgages.
You mentioned you bought partial mortgages. Please explain.
If you want to sell just part of your mortgage, we'll buy it, no problem. For example, we'll buy 25 of the remaining 50 payments. You get a lump sum of cash and then resume collecting the monthly payments starting with payment number 26.
Will you buy new mortgages or do they have to be "seasoned"?
Yes, we buy new mortgages. (A "seasoned" mortgage is one that has been partially paid down, giving a history or how payments have been made.)
Do you limit the size of mortgages you will buy?
No. Any size is Ok if the LTV is favorable.
Who pays the closing costs?
We do.
If I sell my paper for cash, how does it affect the party paying me?
Not at all. Terms of the original agreement remain in force. The only difference is to whom the payments will be made.
Do you buy paper from any state?
Yes, and Canada, too.
Ok, I'm interested. How do we get started?
Just call us, if there is a possibility of a deal, we'll ask you to mail or fax us photocopies of the mortgage and other pertinent information. After evaluating this information, we will make you an offer. If you accept, we'll have the property appraised, check the credit on the payer/owner, and order a title report. If everything checks out, we'll prepare and send you the required closing documents with simple instructions for your signature. After we receive the signed documents from you and we have them recorded, you will receive a check from the title company that can be picked-up, mailed or sent via overnight mail.
We can solve your Real Estate Financing Problems!
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