A: Full Purchase – The purchase of a Mortgage Note in its entirety

Partial Purchase – The purchase of a specified number of future payments

Split Payment Purchase – The purchase of a specified monthly amount

A: Mortgage Notes, Deeds of Trust, Land Contracts in all States

A: Single Family Residences, Multi-Family Units, Condominiums, Townhomes, Mobile Homes with Land, Unimproved Land (meaning no utilities), Improved land (meaning utilities), Commercial Properties

A: We do not purchase Lease Options.

1. The amount of equity in the property (full market value – balance)
2. Note cannot be upside down (balance is greater than property market value)
3. The amount of seasoning on the note  (how long you’ve had the note)
4. You the seller must have owned it for a least a year
5. The interest rate on the note
6. 20% down payment from the buyer
7. The credit of the payer – credit is checked (the price we pay is influenced by the credit)
8. Buyers credit must be at least 650 or more
9. Property appraisal

Credit also determines the pay price on a note. Usually when we quote we don’t know the payers credit and we will base our quote on the information that you or the client provides us. If we find the credit to be different, then we reserve the right to change our quote (either upwards or downwards). This is usually done once the deal is accepted.
We are doing due diligence on a business decision. Their credit score is part of the overall “risk” involved with the purchase of the note, the same way that the appraised value of the home is part of the same equation.

1. Minimum Funding Amount: $30,000
2. Maximum Funding Amount: $500,000
3. First position notes only – No Seconds No Interest Only Notes
4. Credit Requirements: Notes seasoned from 90 days to 1 year = 650 +
5. Notes 1 year and older = 600 +
6. Minimum Seasoning Requirement on all residential notes is 90 days

1. Minimum Funding Amount: $100,000
2. Maximum Funding Amount: $2,000,000
3. First position notes only – No Seconds No Interest Only Notes
4. Minimum Seasoning Requirement: 120 Days Minimum Credit: 675

1. Promissory Note: This is the actual document that we will be purchasing. This document states the terms of the note, including interest rate, length of payments, and monthly payment.
2. The Deed of Trust, Trust Deed, Contract or Land Contract: This is a recorded document that secures the property as collateral for the loan.
3. Title Insurance Policy: An insurance policy issued by a Title Company that guarantees that a property is free of any liens.
4. Settlement Statement: This document is issued at closing and shows the down payment amount on the property as well as taxes paid, etc.
5. Proof of Insurance: This is usually in the form of a Declaration Page. This shows the dates of coverage on the property and the covered amount.
6. Verification of outstanding balance: This is the current payoff balance on the note. We usually request an amortization schedule.
7. The payer’s name, address, and social security number: We check the credit history on all note payers.
8. Seller’s Social Security number: This is for tax-reporting purposes only.
9. Proof of payment history: This can be in the form of cancelled checks, check stubs, accountant’s ledger book, etc. The purpose of this is to show punctuality of the payments.
10. Copies of underlying notes and balances (if applicable): We will need to pay off this note if there is one. We need the balance with a payoff date and who to pay off.
11. Signed Mortgage Purchase Agreement: You will find a copy of this agreement in the back of this training manual and also one on our website. This agreement must be signed by the note seller before we will begin processing the transaction. We will be ordering a title and appraisal and we want to make sure the note seller is obligated by a binding contract to sell his/her mortgage note to us.

1. Gather all the items above for the underwriter
2. Check credit
3. Order Appraisal
4. Check for Clear Title
5. Taxes need to paid or the balance will come out of the purchase price
6. Property Insurance verification
7. Verification of mortgage balance
8. Closing docs are prepared
9. Closing is setup at a Title Company or Attorney Office depending on the state
10. 2-3 weeks total