“Working with you was a very pleasant experience. Everyone was so helpful. You went out of your way to solve all the problems that came up. You never seemed to get stressed out. It was great dealing with you.“ L.R., Little Falls, New York
Mortgage note buyers are buying notes during Covid restrictions.
American Funding Group’s Mortgage Note Buyers have relaxed the buying requirements during the Covid restrictions of 2020 -2021. Previously we had placed limitations when buying notes in certain States which were having the worst experiences with Covid.
Today we are buying mortgage notes in all states. Our note buying’ requirements are a little stricter as we must look at the borrower’s ability to make the payments during this time of pandemic.
This is a risk reward business. The less risk we must take, the more we will be able to pay. Alternatively, on any note purchase, the more risk we have to take, the less we will be able to pay. So, what are the factors we have to evaluate to determine what your mortgage note is worth? And what do we look at… as our mortgage note buyers are buying notes during Coviid?
Even in this time of Covid, our mortgage note buyers determine what we will pay for each mortgage note depending on the borrower’s financial performance with his creditors, the type of property securing the note, the equity position of the borrower, the length of time the note has been in place and the terms of the note.
First, we will look at the borrower’s financial performance with all his creditors. How is he performing on this note with you? Has he been paying on time? And also, how is he performing with other creditors… to determine this, we will do a soft credit check from the credit bureaus. Hos the borrower’s credit performance during Covid changed? Does he have problems related to Covid?
Next, what is type of property secures your mortgage note? The single-family owner-occupied house is the most desirable mortgage from an investor’s point of view. Because even if the payor has great credit… if he encounters financial difficulty, such as reduced income from this pandemic, he may have less money than he has bills. Since everyone needs a place to live, normally the house payment is going to be last payment he will let go,as he will not want to run the risk of losing his home to foreclosure. But this is not true if he misses payments on investor properties, commercial notes or payments on land. The chances of default on those payments is greater than that on single-family owner occupied home.
What were the details of the real estate transaction? When was the property sold, what was the sale price and down payment? What is the interest rate, payment amount and date of first payment?
And, finally how much are we willing to risk… looking at the potential of default? If the borrower defaults, we may have to sit and wait for the foreclosure process to be completed (in some states this could take several years). We will incur carrying costs, attorney fees, repair costs and selling costs. These can consume a lot of equity… as much as 25-30%.
But the message here is do not let the current Covid situation and economic conditions frighten you from selling your mortgage note.
We have been helping note holders like yourself for over 30 years. Please check out what other note sellers had to say about us, by clicking here. Our promise is that we will treat you as we would want to be treated. We will make sure that you are dealt with authentically and fairly.
So if you wish to sell your note now, please fill out the form on the top of this page to get the process started… Or, check out the process of selling your note here. If you would like to speak to one of our mortgage note buyer to have some questions answered, give us a call at (772) 232-2383 and we will help you in any way that we can.
And GOOD Luck in moving through this pandemic.
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