While Oregon note buyers (those who buy notes on properties in Oregon) have much in common with those in other states, the housing market and legal framework can vary by state. Oregon housing markets have generally been less volatile than those of their southern neighbors in California and Arizona, though Oregon note buyers and note holders must still be aware of changing economic conditions that can affect housing. Just like those in other states, Oregon note buyers will still seek out the best quality real estate notes with the least amount of risk, which usually means an attractive house or building in which a creditworthy payer put in a reasonably large down payment.
Real estate notes – also called mortgage notes or deed of trust notes – are created when a property owner sells that property using owner financing and carries back a note. The real estate note shows all of the terms that have been agreed upon like the interest rate, payment amount, conditions for default, etc. and is signed by the payer. While Oregon note buyers might prefer to buy a note on a residential (including mobile homes) or commercial property, most will also consider buying notes on land if it is in a marketable area with other houses nearby. If the note is considered quite risky, the buyer of the note might offer to just buy part of the note, meaning purchasing a certain number of payments instead of the full note. More information on these “partials” is shown below.
The following steps are normally followed in the sale of a note:
- Note holder and note buyer agree on a price after the latter has gained on understanding of the property and financials.
- The note buyer checks the credit of the payer
- The note holder send copies of the relevant documents to the buyer, including an agreement provided by the buyer showing the terms of the sale
- The note buyer reviews the documents, orders a drive-by appraisal, and requests a lien search by a local title company
- If everything above checks out, the buyer prepares assignment documents and sends them to the note holder
- The note holder signs the documents, and send them back along with the original note and original deed of trust
- The buyer records the assignment with the county and wires the funds to the note holder
- The buyer will then inform the note payer of the new address for which to send payments, as well as contact the insurance company.
Selling Part of Your Note
It is easy to understand the selling of a full note, even with the discount that is usually involved. Most people who call us at Seascape Capital are not aware of how partials work and may even be a little suspicious about them. However, partials are a perfectly legal and ethical way to buy notes, and usually work out better for both the original note holder and the buyer. Alan Noblitt, the owner of Seascape Capital, has posted a 2-minute video about how partials work, which you can find at https://www.youtube.com/watch?v=Q08PEQeRpNc. In that short video, he talks about what is a partial, advantages and disadvantages of using it, and what happens if the note does not go to term.
Seascape Capital Inc is a nationwide note buyer and well-known Oregon note buyer. Call Seascape Capital today for more information on how to sell your mortgage note at 1-800-634-4697 or fill out our mortgage application to sell your note.