The most respected mortgage note buyer in Louisiana

From Shreveport, Louisiana to New Orleans, the United Stated’ 18th most populous is an intriguing mixture of culture and geography. As in most US cities, the vast bulk of home sales are conducted through traditional bank lending. But a significant proportion of those homes are bought using owner finance and the creation of a promissory note. And some property owners later decide to sell their notes to one of the many Louisiana real estate note buyers.

What is a Note?

A real estate loan is a type of consumer credit secured by a lien against real estate. In order to secure the debt, the lender takes title to the borrower’s home. The lender then sells the loan to an investor who pools the loans together into securities called collateralized debt obligations (CDOs). These CDOs can be sold to investors around the world. When the borrower defaults on his payments, the lender forecloses on the house and repossesses it. The lender may sell the house at auction or through private sale.Amount owedInterest rateTermPayment frequency and payment due datesAmount of paymentsIf any payment is late or missed, what happens next?

A note from an attorney or other professional is usually prepared by someone who knows their field well and is legally qualified to sign documents.

Before the sale is finalized, both parties come to an agreement on the terms of the sale, including the purchase price, down payment, and any other fees associated with the sale. Also, a mortgage or deed of transfer is prepared and signed by both parties to secure the loan against the property. Other common documents include a closing statement, title insurance policy, and warranty deed

After the Signing

When the buyer buys the house from the original owner, the new owner becomes a “holder” (i.e., a person who receives payment) of the mortgage loan. One option for holders of mortgages is to receive and keep the monthly mortgage payment for a certain period of time. The tradeoffs associated with accepting these future mortgage payment obligations include risks such as:Late or completely missed paymentsOwnership not keeping up with the payment for taxes and insuranceIf the owner doesn’t take care of the property, then its worth will decrease.

You could choose to sell the mortgage to a Louisiana real estate investor who buys notes from people who want to get rid of them. There are lots of investors out there, with differing degrees of experience and integrity. Make sure that the ones you contact:At least five (5) year(s) of experience in the industry.Have an A+ score from the BBBDo they hold licenses for real estate brokerage in at least one state?Be service-oriented, trustworthy and competent.

An excellent note seller like ELM Capital can help you understand how to price notes, walk through the entire process, and answer any question you might have about the sale of your note. Sellers often offer two ways to sell your note – they can sell the whole thing or just part of it. For example, if you were to sell the whole thing, you would receive the total amount due plus interest. However, if you sold only part of the payment, you would only get the portion of the money owed to you. In addition, sellers also typically offer buyers an option to choose between receiving the full note or only part of the note. Depending on what type of note you’re trying to sell, one method could be better than another. You’ll find out why both methods work so well after reading our article.