Arizona is the 6th largest state in the country and was the last one admitted to the U.S. among the contiguous U.S. states. It has had some of the most volatile real estate prices in the country, especially in Phoenix and Tucson, which has affected the marketability of mortgage notes created in the state.
Despite the slightly increased risk of certain markets, Arizona note buyers want to purchase the best quality real estate notes at an attractive price that will work for both the buyer and for the note holder. Of course, real estate notes (often called mortgage notes even in deed of trust states) originate when a property is sold to a willing buyer utilizing owner financing. Although the property can be of almost any type, residential properties (houses and condos) are generally considered to be the least risky and will attract the highest price from an Arizona note buyer. No matter what the property type (residential, commercial, land), the Arizona note buyer will always determine the riskiness of the note by examining such items as:
- the payer credit
- condition of the property
- amount of down payment
- terms of the note
How It Works
Whether the note buyer serves Page or Nogales or any town in between, the note buying company makes money by regularly collecting payments of principal and interest. More specifically, the note buyer ensures profitability by collecting both the interest listed on the face value of the note and the difference between the note balance and the amount paid (called the discounted price). This buyer puts in a large sum of money at the beginning, so it will take years to get back that money and to start making real profits. Thus, the Arizona note buyer will want to be as certain as possible that the property remains in good condition and that the payer on the note is likely to continue making payments until the note is paid off. If the note payer stops making payments, it can be expensive for the note buyer to get back the property, and even worse if the property has been left in poor condition.
Selling Your Note
If you own a note on a property in Arizona and want to sell all or part of it, make sure that the note buyer is credible and experienced. You may want to watch a two minute video by Seascape Capital that discusses finding a great note buyer, which can be found at https://www.youtube.com/watch?v=VnHk01C5orM. In that video, Alan discusses the five most critical items to look for before committing to a particular note buyer. Of those people who own a note and want to sell it, few ever do more than one note in their lifetime, so it is important to get it right the first time.
Seascape Capital is a nationwide note buyer and one of the best known Arizona note buyers. Call Seascape Capital today for more information on how to sell your mortgage note at 1-800-634-4697 or fill out our mortgage note application to sell your note.