The most trusted note buyer in Oregon
Oregon mortgage loan investors (those who invest in mortgages in Oregon) have much to learn from those in other parts of the country, but they may face some unique challenges due to differences in the local economy. Oregon borrowers and lenders alike need to be aware of these changes and adjust accordingly. Like any other investor, Oregon mortgage loan investors will look for high-quality loans with low default rates and strong collateral. They will also want to avoid loans with excessive fees and costs, since these can eat away at profits.
A real estate loan is an agreement between a borrower and lender to borrow funds to finance the purchase of a home. In order to obtain a loan, borrowers must provide financial documentation such as tax returns, bank statements, credit reports, and proof of employment. Borrowers can choose to get a fixed-rate loan or a variable-rate loan. Variable-rate loans adjust the monthly principal and/or the monthly rate based on changes in the prime lending rate. Fixed-rate loans do not change rates during the life of the loan. Some lenders may require borrowers to put down a larger percentage of the total cost of the home. For example, a 20% down-payment requirement means that the borrower puts down $20,000 out of the $100,000 purchase price. Lenders typically charge higher fees for high down-pay amounts. These fees include points, origination fees, appraisal fees, title insurance, recording fees, and closing costs. Most states allow borrowers to refinance their loans after they close. Refinancing allows borrowers to lower their monthly debt service by paying off the existing loan and taking out a new one with a lower rate. Refinancing requires borrowers to repay the entire balance of the old loan plus any accrued fees. Because refinancing lowers the overall cost of ownership, it is often the preferred method of homeowners who wish to sell their current home before moving into another one.
Now that you’ve used the owner financing option for selling your Oregon property, you may want to decide whether to keep the mortgage loan or resell it to an Oregon mortgage broker. You’re probably wondering if you should hold onto the mortgage loan or reselling it to an Oregon mortgage lender.
If you have a strong real estate investment, you may be able to get out of the loan if you’re not making timely payments. However, if you aren’t confident that the buyers will always pay on-schedule, if you don’t have enough free cash flow to cover the tax and/or insure the house, or if you’re uncomfortable holding the mortgage, then you might want to consider selling the house instead.
Once you’ve decided to sell your mortgage notes, we can help you do so. Perhaps you weren’t happy with owning an owned mortgage or are just tired of managing them. Regardless of why you’re selling, you’ll probably first need to find a mortgage investor who is established in the industry and who can offer you a good deal. Once you and they have spoken and agreed on the amount you should receive for each mortgage loan, you’d then proceed to the next step.
Usually, there are seven steps involved in selling a bond:After the seller has given an indication of the value of the house, the buyer agrees on a purchase offer.A lender who buys a loan from another lender verifies the borrower’s creditworthiness.The seller sends copies of the relevant documents (including an executed contract) to the buyers, including one from the buyers showing the agreed upon purchase price.The mortgage broker reviews the loan application, approves the loan, and then sends it to the lender for review.Once everything has been checked out, the buyer prepares the assignment documents and sends them off to the note holders.The notary signs the documents, and sends them back along with the originals, which she keeps for her records.The buyer records the sale with the county and wires payment to the sellerAfter receiving the new payment instructions from the buyer, the seller will notify the buyer of the new shipping destination, as well as contact their insurance provider about the new location.
Selling Partial NotesThere are two ways to approach selling partials. One is to offer a discount off the face value of the entire loan, and then charge interest only on the discounted amount. Another option is to offer a discount on just the principal portion of the loan, and then charge the same rate of interest on the whole amount. Both methods are acceptable, although one method is generally preferred over the other. For example, if you were to offer $10,000 worth of a 10% partial at 5%, your client would receive $5,000 in cash back (the $10,000 minus the $5,000). On the other hand, if you offered $10,000 worth at 7%, your client would get $7,000 in cash back ($10,000 – $3,000), plus an additional $2,000 in interest.