Welcome to US Note
Buyer, a Private Note Buyer. We are also Mobile Home Note
Buyers
We are U.S. Funding
Solutions, Inc., private note buyers and mobile home
note buyers and specializing in buying Owner Financed
Mortgages Notes as well as Deeds of Trust, Land Contracts,
and Business property notes. Want a Lump Sum of
Cash Now instead of waiting
years to collect your money? As a national notebuyer, we can
turn your monthly payments into a lump sum of cash. (Closings
in as little as 10 Days.)
News
Flash: We now buy business notes with no real estate for security.
Closings in 1 to 1and a half weeks. To learn more, go to
Business
Note Buyers to sell
a business note fast.
Following
is a partial list (Call if you have a private note that is
not on this partial list) - Non-Seasoned mortgage notes,
Non-Performing Mortgages, Simultaneous Closings (Buyer needs
good credit and 20%+ down), Second mortgages, 3rd mortgages,
Business notes without real estate, Partial Note Purchases,
farm land notes, church notes, defaulted mortgage notes, Accounts
Receivables, Raw Land, - Don't hesitate to call if
you have a note of any kind that is not on this list.We are even an Alaska note buyer, CA Note Buyer
and a New York Note Buyer plus we buy notes in all other states
and don't forget, we are also mobile home note buyers.
US
Note Buyer - Call Today For Great Pricing or Just To Ask Questions.
We're here for you.
1-877-655-5625
(Sorry,
No Brokers)
Also, did you know that you Can
Sell a Portion of Your Note Payments as opposed
to selling the entire mortgage? Inquire about our Partial
Purchase Program and find out how you can receive a lump sum
of cash now for a predetermined number of future mortgage
payments.
So why would you choose U.S. Funding Solutions as your Note
Buyer? We are a national private note buyer
and mobile home note buyers and pride ourselves on paying
the highest price in the industry. Also, we conduct ourselves
in a professional manner and have the ability to fund your
note sale quickly. Bottom line is we do what we say we will
do. We also return ALL calls promptly, usually within 1 hour
during business hours and within 2 hours on the weekend.
__________
"In short,
given no one in the political system is about to propose 40%
funding cuts or 80% tax hikes, the only remaining way to meet
all the new government obligations is inflate, inflate, inflate
the money supply. This way, much like a Ponzi scheme, debts
can be paid with progressively weaker dollars."
Lee Bellinger, Editor,
The American Sentinel
Attention Note Holders
- Take advantage of our FREE List of Noteholder Helpful Hints
from the perspective of a Private Note Buyer on our main corporate
site. Click
Here to Access this valuable information on Protecting
Your Mortgage Note.
US
Note Buyer - Call Today For Great Pricing or Just To Ask Questions
1-877-655-5625
(Sorry,
No Brokers)
Private
Note Buyer and Mobile Home Note Buyer- Frequently Asked Questions
1. What are the
pluses and minuses to selling a private note to a private
note buyer? - The three biggest advantages of selling your
note to a private note buyer are a) Receiving cash now for
opportunistic investments or to cover critical expenses, b)
Eliminating the hassles of managing the borrower's payments
and reporting, and having a significant financial cushion
for this volatile economy.
2. What determines
how much I will receive from a private note buyer? There are
4 main factors. They are: Equity in the property, seasoning
on the note, the interest rate on the note and lastly the
credit of the borrower.
3. Is an appraisal
necessary? Yes, although in many instances with good equity,
we will only order a BPO (Real Estate Broker pricing Opinion).
4. As a Private
Note Buyer. do you need to check the credit
of the note payor? Yes, it is a very important factor in determining
the cash you will receive for your mortgage note.
5. How quickly
can I receive my cash? Typically 1 to 2 weeks after all your
paperwork is in.
6. Are you mobile
note buyers? Yes, if they include the land.
7. Do you buy
mortgages on raw land? Yes, with or without improvements.
8. Are you a
private note buyer of commercial real estate notes? Yes, for
occupied commercial buildings.
9. Can you still
provide me with a quote if I don't know the credit of the
payor? We will provide you with a quote based on your best
guess and adjust (up or down) the final payment after credit
is pulled.
10. Can I sell
a Land Contracts to you? Yes
11. Does a private
note buyer buy Trust Deeds? Yes.
12. I would like
to sell my mortgage payments for some extra cash but am afraid
of loosing all the monthly income? Not to worry. We can make
a partial purchase of your private note for just the amount
you need
13. What is the
minimum mortgage size you will buy? $30,000..
14. Can I sell
my mobile home note with only 3 months of seasoning?
Yes.
15. Are you also
a TX note buyer? Yes, we are a Texas
note buyer as we are a note buyer in all 50 states.
16. Are you single
wide mobile home note buyers? Yes, if there is land.
17. Can I sell
a mobile home note that's in a mobile home park? No,
sorry.To my knowledge, all mobile home note buyers require
the mobile home to be part of land, otherwise it's not really
considered real estate.
18. Can II sell
just a portion of my note? Absolutely. Partials are almost
always the best deal for a note seller.
19. What constitutes
proof of seasoning? We prefer copies of checks or money orders
from your borrower but can use a combination of a payment
log and copies of bank statements showing the exact deposit
of the payments.
20. If I sell
a part of my note now, can I sell another portion down the
road if I need more money? Yes, absolutely.
21. Why note
buyers are no longer buying notes through simultaneous closings.
I get a good many calls from people wanting to sell a note
through a simultaneous closing. To my knowledge, no note buyer
is now doing these. The problem is that the government wants
these to fall under RESPA laws, dramatically increasing the
paperwork and red tape. Note buyers simply avoid these since
there are plenty of notes with 2 or more months of seasoning.
I would recommend you consider using a land contract for your
transaction but you may need the approval of your current
lender. You may want to consult a good real estate attorney.
Note Selling Tips and Thoughts
When contacting a note buyer, have all your paperwork
in front of you before you make the call. The critical paperwork
to have available is:
The note - You will need this for the following
note information
The interest rate
The date of the firsty note payment
The payment amount
The amortization period and/or the balloon
period
The amortization schedule for the current
balance
Any other unusual information (extra payments,
etc.)
A copy of the borrower's credit report if
available, even if old as it will have their Social
Security number on it to pull credit when appropriate
Just remember, the more accurate the information
provided to a note buyer, the more reliable the quote
I would recommend you contact more than 3 note
buyers for a quote. I have had note sellers contact so many
note buyers that some would not even quote on the note and
others pulled their offer fearing the seller would bolt
for a couple hundred bucks after they had invested time
and money in the transaction. The note buying community
is a pretty small one and word gets around.
When a note buyer gives you a quote, let them
know your decision either way. It's just the right thing
to do and you would want the same if you traded places.
Also, give them your decision within 5 business days.
When you receive a quote you like, get your paperwork
in asap. Note sellers are always asking how long to close
but sadly many of the hold ups are the result of the seller
not getting their paperwork in promptly.
Private Note Buyer Related Articles
The New Era of Real Estate
In the last 7 to 10 years people have been treating real
estate, including their personal residence like a business.
Many homeowners and house investors had visions of getting
rich from their properties. It also seems everyone thought
they were an expert. Many real estate investors were looking
like gambling addicts who thought they could make up for their
losses with just one more roll of the dice. Based on some
popular TV shows, many homeowners still think they can continue
to see big profits. All the experts keep telling them that
they just need to wait a little longer for the market to turn
around.
Sorry to be the bearer of bad news, but real estate has a
new reality. We are not at the bottom of this market so home
prices will continue to fall. Add to that the rising foreclosures,
not just from the bursting of the real estate bubble but now
from many hundreds of thousands of job cuts. When you consider
the following pressures on the real estate market, how could
anyone think prices are going to turn around any time soon?
These factors include, 1) A huge inventory of houses for sale,
2) An increasing number of foreclosures, 3) Continued massive
layoffs, 4) Extremely tight lending standards and 5) Banks
and mortgage companies going out of business right and left
(some are out of business but due to government money stay
on life support, aka "Zombie banks").
It is sad, but true that Real Estate doesn’t always
go up in value. It might take a generation or more for real
estate prices to just recover in some locations.
To illustrate this point with a real life example from the
Great Depression, we knew a woman who was living off real
estate in the 1990s her father bought during the 1920s and
1930s.
Seventy years is a long time to wait for an investment to
pay off. It should change the way we manage our personal real
estate investments. We could be in the beginning of such a
period right now. If you are paying on a big mortgage you
experience severe risk in the event of job loss or an economic
downturn.
Owing the bankers and loan companies just puts you under
more pressure. So what should you do?
You want to get rid of this debt as soon as possible. It
makes you vulnerable to any income glitch like a layoff. If
you own the structure outright, it means you only have to
pay taxes, insurance and utilities.
Here are some good strategies.
1. Set aside money until you can put down a sizeable down
payment if you are buying.
2. Refinance a short-term mortgage or better yet buy what
house you can with no mortgage.
3. Pay off your existing mortgage as fast as you can. (There
are some good mortgage acceleration programs out there.)
4. Trade down to a smaller house that is more affordable.
5. Purchase some land where you can grow food or add on other
structures.
6. Look for tax breaks for agricultural land and homestead
exemptions.
7. Get rid of car payments and apply the income to your home.
Cars are terrible investments. Even now real estate is better.
I’ve seen car payments greater than many mortgage payments.
Forget trying to keep up with the proverbial 'Jones'. They
have gone or are going right off a cliff.
Finally, prepare yourself and your family for an even further
drop in home prices. Also, expect lots more foreclosures creating
a continued downward spiral. If you prepare for the worst
and it doesn’t happen, think how much less stress you
would have in your life without big house and car payments.
And I for one could use a lot less stress. If you're taking
medications for depression, consult your doctor but you may
find you don't need them anymore.
Just what Is A Note Buyer Looking
For When I Go To Cash Out My Private Mortgage Note?
I see a lot of confusion among owner financed
private note owners about the price a private mortgage note
buyer will pay for their private note. This really shouldn't
be necessary as there are really just five main factors to
determine the discount percentage for a seller financed mortgage
note.
Private mortgage note buyers consider the
following five elements when buying and pricing a mortgage.
Knowing these factors may reduce the frustrations of many
mortgage sellers. They are.
1. The credit scores of the buyer. Many mortgage note purchasers
want to see all 3 credit scores and a middle credit score
of at least 620, although higher is even better. Be sure you
pull all 3 credit bureaus even if you think your buyers have
great credit and keep a copy of the credit reports for the
future.
2. The amount of equity the home buyer has in the house (or
business property for that matter). In other words the down
payment plus gain in worth since the purchase. And, just because
the appraisal was higher than the purchase price doesn't factor
in a lot to a mortgage note buyer.
3. The number of timely payments the buyer has made. The more
payments the borrower has made, the more valuable the mortgage.
Be sure and keep meticulous records of the mortgagors mortgage
payments, including a copy of all their cancelled checks.
Don't permit the homebuyer to pay cash. If they are unwavering
to pay cash, require them to get money orders.
4. The rate of interest for the mortgage note. Don't forget,
you are financing for somebody who either chooses not get
a standard mortgage note or who can not get conventional financing
so set the rate of interest at a premium over current market
interest rates.
5. How long the term of the note is, as most mortgage note
investors are buying future cash flow.
To conclude, if you are considering creating
a private mortgage note through owner financing, you want
to do as many of the following things as you can to create
a good mortgage note to sell to a mortgage buyer for top dollar.
These include, a) Getting as much of a down payment as you
possibly can, b) Trying to sell to as good a credit homebuyer
as you can, c) Require as high an interest rate as possible
and d) Set a payment term or balloon period of between 5 to
ten years, with no very short balloon period. If I was trying
to sell a mortgage note to a mortgage buyer, I would work
as hard as I can on these items to maximize the cash I command
for this asset.
Exactly How Does A Private Note Buyer
Compute The Cost For a Owner Financed Note?
To begin with let me state the obvious. If you sold a home
or business and are holding the private mortgage for the buyer,
you have a significant asset that can be sold. This as any
other financial asset has a risk and a value (worth of the
future income stream ) that you can sell to other individuals
or buyers. Or if you own a house you need to sell, you can
offer private financing to get top money for the house, sell
the home and then you can sell the mortgage you are holding
in a concurrent closing for an instantaneous payoff.
Many mortgage buyers make the mortgage note
buying process a mystery. And while not every private note
purchaser has the same requirements just like a stock mutual
fund there are 5 main factors that affect the price they will
pay for a mortgage. I have itemized them below.
These factors are:
1. The equity in the real estate based on
its appraised or estimated value or sales price. The higher
the amount of equity , the greater the purchase price as there
is a smaller amount risk for the investor.
2. Seasoning on the mortgage, meaning it's
been around a good bit of time. In this illustration mortgage
note purchasers are largely looking for a good payment history.
These private investors desire to document that the mortgage
is being paid and the longer the time period, the better.
(Risk)
3. The rate of interest on the private mortgage.
The higher the rate or spread as compared to a benchmark such
as US treasuries, the larger the price offered. Mortgage note
holders should be keenly aware of this factor for their asset.
If, as many experts see coming we go into a phase of significant
inflation due to all the government spending, the value of
their private mortgage could drop significantly. (Time value
of money.)
4. The amount of time left on the note (or
balloon period). While this will have an effect the price,
some private note investors like lengthier periods than others.
(Time value of money)
5. The creditworthiness of the borrower.
Most private note investors have established minimum credit
score levels in order to purchase a mortgage note. Also, these
buyers will want to look at the buyer's credit report for
its history, recent bankruptcies, etc.
Note purchasers will frequently add a sixth
issue, the size of the purchase outlay (Risk). The larger
the dollar exposure, the less understanding these private
investors will be on credit, seasoning, etc.
One last thought about seasoning, in particular
as it relates to the sale of a private note through concurrent
closings. Obviously, selling a note formed from the sale of
a property results in the least period of seasoning for a
note. And while this would reduce the price a mortgage note
purchaser will to pay, if there is a good down payment or
combination of a good down payment and the property seller
is willing to hold a second, this type purchase can be a very
nice deal for the home seller. This is due to the property
seller 1) Being able to sell the home much quicker, 2) Usually
receiving top money for the house and 3) Not having to pay
real estate sales person's commissions.
So that's it. I hope this article was instructive.
4 Mistakes To Avoid When Managing
Your Owner Financed Mortgage Note
There are some critical tasks that someone who holds a private
mortgage note must do in order to protect this asset. Below
are 4 mistakes many note holders often make that need to be
avoided.
With the crash of the real estate market and complete pendulum
swing in requirements to qualify for a mortgage, many home
sellers are resorting to owner financing in order to move
their property. Once the sale is completed, the seller now
has in their possession a valuable financial asset. But managing
an owner financed note is hardly a skill most home sellers
possess or is taught in school or anywhere else today. As
a private note buyer I get calls daily from note sellers wanting
to sell a note that haven’t managed their asset as well
as they should. Some of the mistakes can make a note un-sellable,
or at least for a discount they can accept. Below are the
4 biggest mistakes I see on a daily basis.
1. Not monitoring whether the borrower is current on their
property taxes – In a worse case scenario, this mistake
could result in a total loss if the home were foreclosed on
my the local municipality and sold off before the note holder
even knew it.
2. Not insuring that the buyer is current on their homeowner’s
insurance as well as has sufficient coverage – If the
borrower let their insurance coverage lapse and had a fire,
the note holder could again end up with a worthless note.
Note holders should not only monitor the borrowers insurance
coverage but should be sure they are on the policy as the
mortgagee.
3. Not physically monitoring the property – Many property
sellers no longer reside in the city the property they sold
and owner financed or they live across town. As a result,
they rarely if ever drive by the home which is the asset supporting
the note they hold. What can and has happened on many occasions
is that the borrower may have moved out and is renting the
property out to a friend or family member who has a lot less
incentive to maintain the property. This could also cause
problems if a major insurance claim were made since the property
is no longer owner occupied, requiring a different insurance
policy.
4. Allowing the borrower to pay their mortgage in cash each
month – If the note holder never needs to sell their
note, this may not be a big deal. However, if the note holder
ever needs to sell their note, they will not have proof of
the servicing of the note. This makes a note worth much less
and giving the borrower a receipt will not suffice.
There you have it, four mistakes to avoid in order to a)
protect the value of a private mortgage note and b) make the
note worth more money if you ever need to sell it.
Article
For Homebuyers
The Easiest Home Loan On The Planet,
Period
Many frustrated homebuyers continue to search
the web for no income verification loans and stated income
loans only to find none from traditional lenders. What they
don’t realize is that there is still one no income verification
home loan available if they know where to look.
What banks or mortgage companies offer no
income verification loans or stated income loans today? The
short answer is none. So where are these loans? Actually there
are hundreds of thousands, if not millions of them. What I’m
talking about is owner financing and it’s amazingly
easy to get.
So how do I know this? Because as a private
mortgage buyer, I have a birds eye view of the owner-financed
mortgages out in the market and many of the loans provided
by home sellers (and businesses) in order to sell a home are
mind-boggling. Just to name a few, zero interest on the loan,
3% interest, interest only loans, no credit check loans (pretty
common), no income documentation mortgage loans and so on.
So how does someone wanting to buy a home
find such loans? Actually, many are easy to find but others
require a bit of work to find. The easy ones are either advertised
as “owner financing available” in their ad or
the real estate agent’s ad. For the others you can go
about finding them either through the tax office or through
a real estate agent. You are looking for homes for sale where
there is no mortgage or only a small mortgage on the home.
These are prime candidates for owner financing. Most real
estate agents know if there is a mortgage on the property.
For the tax office, you would need to search for properties
that you know are for sale to see if they have a mortgage
lien on them. You can estimate the mortgage balance by looking
at the terms and initial loan date.
Lastly, your chances of getting a private
seller financed loan will go up significantly if you have
at least a 10% down payment. Actually, the higher your down
payment the better the chances the seller will not want to
see a copy of your credit report. And for those wanting to
see your credit report, they may really not care if your credit
is below what most traditional mortgage lenders require today.
However, it might be a good idea to have a copy of your report
just in case but if you have low scores; you might want to
be prepared to explain what happened to cause them. Most home
sellers will listen to a good story and may just ignore your
credit completely.
So there you have it, a way to get a great
home loan without all the hassles of traditional mortgages.
