Sell a mortgage note… What is it worth?

Great question. When we determining what is a mortgage note worth, we look at 3 major factors.

The first group of factors all relate to the borrower.

We are interested in two things:  1) how is your payor performing on his note with you, and 2) how is he performing with his other creditors.  If your borrower has good credit and is making all payments on time, we will pay more for your mortgage note then if your payor has weak credit or poor performance.

Next, another important factor in determining what a mortgage note is worth is the property type which secures that mortgage note.

The most desirable real estate note is the mortgage on a single-family owner-occupied residence. Even a borrower with good credit can run into financial difficulty due to a number of factors, like illness, loss of job or divorce. Generally, when someone doesn’t have enough money to pay all his bills, the mortgage payment on his home is the first payment he will make. But a mortgage payment on an investor property or land is much less important and less likely to be paid in a timely manner.

Therefore, we will pay more for a mortgage on a single-family owner-occupied house then we will pay for a mortgage note for an investor property, commercial building or raw land.

And when you want to sell a mortgage note we look at the note itself.

How long has it been in place? What are the payment terms? What’s the interest rate? How much equity does the payor have at risk?… What is the current note balance as compared to the current property value?

For a fast and fair offer when you want to find out what a mortgage note is worth… Just contact us at (772) 232-2383.

While we are National Note Buyers, we do specialize in buying Texas Deeds of Trust and in buying Florida Mortgage notes.

Trust that you will be treated with courtesy and respect as our philosophy at American Funding Group is “We won’t be happy, unless you are happy”. Check out what people who have dealt with us say about American Funding Group.