Quote from Bill on September 9, 2024, 1:24 pmSeller Financed Mortgage Notes, also known as Seller Carry Back Originated Notes:
Seller Financed Notes are when a seller of a property carries the financing through a created mortgage & note, between the seller and the buyer. The seller usually creates a loan with the buyer (who also now becomes the borrower). The loan is usually created from the seller’s equity in the property. The seller doesn't actually lend out money in the form of a loan. This usually allows a seller to sell a property to a buyer that doesn’t want or can't get traditional financing from a bank. The borrower now owes the seller of the property, a mortgage the seller created, based on the terms of the promissory note they agreed upon. The seller’s security instrument is the mortgage on the property. If the borrower doesn’t pay the seller, the seller has the legal means to get the property back through foreclosure or an agreed upon deed in lieu.
Institutional Mortgage Notes, also known as Bank Originated Notes (We Focus on Buying Institutional Mortgage Notes):
Institutional Mortgage Notes are originated by a bank. The bank lends out money in the form of a mortgage loan to the borrower. The borrower now has a loan and owes the bank money. The loan will be paid back to the bank, based on the terms of the promissory note. The bank’s security instrument is the mortgage on the property. If the borrower doesn’t pay the bank, the bank has the legal means to get the property back through foreclosure.
There’s opportunity, in both Seller Financed Mortgage Notes & Institutional Mortgage Notes. We focus mainly on Institutional Residential Mortgage Notes.
Seller Financed Mortgage Notes, also known as Seller Carry Back Originated Notes:
Seller Financed Notes are when a seller of a property carries the financing through a created mortgage & note, between the seller and the buyer. The seller usually creates a loan with the buyer (who also now becomes the borrower). The loan is usually created from the seller’s equity in the property. The seller doesn't actually lend out money in the form of a loan. This usually allows a seller to sell a property to a buyer that doesn’t want or can't get traditional financing from a bank. The borrower now owes the seller of the property, a mortgage the seller created, based on the terms of the promissory note they agreed upon. The seller’s security instrument is the mortgage on the property. If the borrower doesn’t pay the seller, the seller has the legal means to get the property back through foreclosure or an agreed upon deed in lieu.
Institutional Mortgage Notes, also known as Bank Originated Notes (We Focus on Buying Institutional Mortgage Notes):
Institutional Mortgage Notes are originated by a bank. The bank lends out money in the form of a mortgage loan to the borrower. The borrower now has a loan and owes the bank money. The loan will be paid back to the bank, based on the terms of the promissory note. The bank’s security instrument is the mortgage on the property. If the borrower doesn’t pay the bank, the bank has the legal means to get the property back through foreclosure.
There’s opportunity, in both Seller Financed Mortgage Notes & Institutional Mortgage Notes. We focus mainly on Institutional Residential Mortgage Notes.