Tag Archives: note buying

Take the Stress Out Of Selling a Mortgage Note

Life changes, often exciting and sometimes challenging, at times can be overwhelming. This is especially true when it comes to financing them. If you have made the decision to or are considering selling a mortgage note, it may feel like it falls under that umbrella of overwhelming, but it doesn’t have to.

The very first step for ensuring a stress free mortgage note sale experience is choosing a trusted and reputable note buyer.  A seasoned note buyer can answer your specific questions, assist you to determine the best course of action when selling all of a real estate note or a partial note sale, and then walk you through each step of the note buying process.

As a note buyer and note broker, one of our main goals at Seascape Capital is to make the mortgage note selling process as easy and stress free as possible.

The Process:

Although each situation is different, there are common steps involved in selling your mortgage or real estate note. Below is our typical process.

  1. Contact Seascape Capitalwith important information about your note and property, such as type of property, sale price, payment amounts, etc. We can assist you to determine the information required.
  2. We will usually respond within one business day with a quote for the full amount of the mortgage note or part of it , depending on your desire for the mortgage note sale.
  3. Upon approval of the quote there is just a small amount of paperwork to complete, and if there isn’t a recent appraisal or title policy we can take that off your to do list by making the arrangements. Most importantly, you pay no closing costs, fees, or commissions.
  4. Once we have the documents, the process generally only takes 2-3 weeks for you to receive the money. It’s that simple!

More significant than the process, is how a note buyer conducts business. Please see below for testimonials from some of our valued clients:

Your invaluable assistance helped me close out the estate administration of the residential note that was the last remaining asset in my father’s estate. I appreciate your persistence and ingenuity in overcoming problems and obstacles to bring a difficult transaction to a successful close. I’ll recommend you highly to anyone who faces a similar challenge.

Tom M.

I do consider you a friend now, and I would give you a Gold Star, A+ for your great work and communications.

Ilena R.

Doing business with Alan was a successful experience. He is diligent, responsive and does a nice job following up through the conclusion of the deal.

Thanks Again.

Rick H.

Whether you are ready to request a mortgage note quote or would just like to seek advice on how to proceed with selling a note, please give us a call. As always, if you have additional information to offer or general questions you think others might have as well, please enter them in the comments below and we will be happy to respond.


Planning in the New Year – Is It The Right Time To Sell A Mortgage Note?

It wasn’t long ago that we celebrated the coming of new year –  we watched the ball fall, made some resolutions and some noise, and toasted to 2013.

Starting fresh is what the new year is all about. While we do reflect on the past, for example how we capped off 2012 with a tumultuous presidential election and concerns about the fiscal cliff, the new year is really more about planning for the future. As we look ahead and consider changes to come, it’s a good time to review finances and consider the best use for our investments.

The decision whether to sell all or part of a mortgage note (also often called a real estate note, deed of trust or promissory note) usually boils down to two main categories.

First: Simplifying Life

While holding a mortgage note can be a good investment and receiving monthly payments beneficial, managing the responsibilities and risks inherent to holding a mortgage note can feel burdensome at times. If you find any of the below to be stressors, it may be a good time to consider selling your mortgage note:

  1. Managing payments, insurance, and taxes for your mortgage note.
  2. Planning your estate for heirs.
  3. Settling finances in the event of a divorce.
  4. Assuming the risk of non-payment of a mortgage note or bankruptcy of the payer.
  5. Unexpected changes due to the divorce or death of the payer.
  6. Worrying about default and foreclosure.
  7. Concerns with the real estate property becoming devalued.

 Second: Cash Requirement

There is no question that life changes, planned or not, often come with expenses. Selling a mortgage note is a fairly simple way to raise a lump sum of cash quickly, and can be significant depending on the value of your mortgage note. Types of life events that may warrant selling a mortgage note are not limited to, but include the list below:

  1. Covering medical expenses
  2. Paying for college tuition.
  3. Planning a wedding and/or starting a family.
  4. Buying new real estate.
  5. Making a career change and/or investing in a new business.
  6. Transitioning into other investments or reinvesting at a higher interest rate.
  7. Purchasing a vehicle and other high cost items.
  8. Funding travel plans.
  9. Managing retirement expenses.

If you are in the process of deciding if selling a mortgage note makes sense for you, you may want to contact a  reputable mortgage note buyer for further advice and information.


Finding a Floor in Housing

“U.S. home prices rose in September for the sixth straight month, signaling that the housing market is in the midst of a recovery” screamed the headline in MarketWatch earlier this week.  Indeed, there has been positive news for housing lately.  Besides rising home sales and prices, foreclosures have been declining and stocks of homebuilders have done well this year.  Prices have risen significantly in Phoenix and some coastal areas in California and Florida, with numerous stories of bidding wars and sellers’ markets.

Consumer confidence has also reached up to levels not seen in the last few years, and housing is seen by most economists now as more of a help than a hindrance to the general economy.  One large financial institution is predicting that home prices will increase 4-5% annually for the next several years.  On the note buying side, some of my fellow mortgage note buyers are acting like we have returned to the glory days of 2005 and 2006.  Clearly, the media and many “experts” believe that the real estate recovery is well underway.

Is the housing recovery sustainable in the short (< 2 years) and medium-term (2-5 years out)?  In the short term, anything is possible, so I would not even hazard a guess unless I could read the minds of politicians (though I’m sure that I would not like what I would find if I could).  Over the medium-term, any recovery is susceptible to headwinds, including:

1. Falling household incomes and high household debt, in combination with a high unemployment rate, means that most families are in no position buy a house.  The banks are still being fairly tight with real estate loans too.
2. A large percentage of current home buyers are investors (27% in 2011) or foreigners (including Chinese looking for a safer place to park their cash).  These are groups that are more volatile than typical homeowners and are likelier to jump ship at the first sign of trouble.
3. Lots of mortgages are still in trouble.  There are 1.6 million homes in some form of foreclosure backlog (per RealtyTrac), 2 million foreclosures in progress, between 1.5 million and 4 million homes at least three months behind on payments (per Barclays Capital Research), and 10 million mortgages underwater.  There have been 5 million completed foreclosures since 2006, out of 50 million households carrying a mortgage (per Dr. Housing Bubble).
4. Interest rates, currently around 3.5% for a 30-year fixed loan, have been held unnaturally low by the Fed.   Those rates must and will go back up, making loan payments more difficult for many.
5. The federal government is involved in nearly every mortgage loan out there.  This is the same government with trillions of dollars in debt that it has no way of paying back, where the Federal Housing Administration will soon need a bailout, and where a change to the mortgage interest deduction is being considered (though I don’t think the deduction will change much).

When considering what will happen with the U.S. real estate market, we must also consider indirectly related factors and competing investments like the stock market, real estate trends in other countries, world economies, and similar characteristics.  When I look at the structural issues facing the U.S. and other major economies, along with the continued ineptness of politicians and bureaucrats, it is hard to be optimistic about most investment types.  I’ll go out on a limb to predict that any current recovery will be short-lived and that housing prices will be at least 10% lower in five years than they are now.  Feel free to call me at the end of 2017 to either congratulate or ridicule me for my prediction.