The Market Value Of A Private Mortgage Note

I. Every mortgage note is a unique investment and therefore has a unique market value.

II. There are a number of important factors that simultaneously determine the market value of a private mortgage note. Those factors are:

  1. The type of property secured by the mortgage.
  2. The value of the property secured by the mortgage.
  3. The current balance of the mortgage note.
  4. The interest rate on the mortgage note.
  5. The size of the monthly payments.
  6. The number of payments made.
  7. The number of payments remaining.
  8. The Borrower’s credit history.
  9. Your experience receiving payments.
  10. The current level of interest rates.

III. Mortgage holders can take pro-active steps to protect the market value of their investment.

IV. The market value of a private mortgage will be less than the outstanding principal balance remaining on it.

V. When interest rates rise, the market value of a mortgage note falls.

VI. When interest rates fall, the market value of a mortgage note rises.

VII. The market value of a mortgage note will increase over time as the owner builds equity in the property and establishes a timely record of making payments.

 

Selling A Private Mortgage Note

I. Almost every mortgage can be sold, even mortgages where the payments are not being made on a timely basis.

II. There are a number of companies that purchase private mortgage notes. Together, we create a very active and competitive market.

III. Mortgage note holders have a number of different sale alternatives available to them; each can be designed to help meet a specific goal they would like to achieve. For example, The Mortgage Buyer, Inc. offers customizable options.

IV. Providing as much information as possible about your note and mortgage will help you receive the highest possible purchase price for it.

V. At The Mortgage Buyer, Inc., we pay for all of the expenses necessary to complete the purchase of a private mortgage.

  1. The value of the property must be established by completing a drive-by appraisal.
  2. A policy of title insurance must be purchased on the mortgage.
  3. The outstanding balance of the note must be verified with the Borrower.

Questions? Feel free to contact The Mortgage Buyer, Inc. weekdays from 8:00 AM to 6:00 PM EST toll free at (800) 618-2485 or email us.

The Mortgage Buyer, Inc • PO Box 100 • Hillsdale, NY 12529 • 1-800-618-2485 • email: John@TheMortgageBuyer.com