910, 2018

What is the difference between a mortgage and a note?

By |October 9th, 2018|Categories: Featured Blogs|Tags: , , , , |

The terms promissory note and mortgage note are used as on in the same, but a mortgage and a promissory note are two very different things. Note A promissory note is basically an IOU on a loan. It is a promise to repay the loan amount to the owner. Unlike [...]

507, 2018

What Happens When a Buyer Defaults on a Seller-Backed Mortgage?

By |July 5th, 2018|Categories: Seller Financing|Tags: , , , |

There’s no question the decision to offer seller financing involves an amount of risk. A buyer wouldn’t be seeking seller financing if their financial situation allowed them to secure a traditional bank loan. That’s why sellers should secure a large down payment on a loan. In addition, they should [...]

806, 2018

How to Determine the Value of Mortgage Notes

By |June 8th, 2018|Categories: Seller Financing, Selling Mortgage Notes|Tags: , , , |

If you’ve provided owner financing on real property that you own, often you find yourself thinking about selling that note to free up cash for other needs. You probably also wonder what your note is actually worth. You may even assume it was simply equal to the amount [...]

106, 2018

Lien Positions and Seller Financing Transactions

By |June 1st, 2018|Categories: Seller Financing|Tags: , , , |

You may have heard of the term lien position or lienholder in a real estate or mortgage transaction. This article discusses lien positions and why attention should be given to them when considering certain seller financing agreements. To understand what a lien position is, let’s [...]

2505, 2018

Rising Interest Rates and Selling Your Mortgage Note

By |May 25th, 2018|Categories: Featured Blogs, Selling Mortgage Notes|Tags: , , , |

Do Rising Interest Rates Make Selling Your Note a Better Way to Secure Cash for Personal Needs? During the financial crisis of 2008, the Federal Reserve lowered the federal funds rate. This meant the prime rate - the interest rate on which banks base their lending rates [...]

1805, 2018

The History of Seller Financing

By |May 18th, 2018|Categories: Seller Financing|Tags: , , , |

These days, most of us who are considering buying a home pretty much start the process the same way - we contact our bank or other institutional lender and apply for a mortgage loan that will allow us to borrow a rather large sum of money and pay [...]