Individuals who sold properties using owner financing and carried a note may at some point be interested in selling that note to a Washington mortgage buyer. Of course, the term Washington mortgage buyer refers to a company that buys notes in the state, regardless of whether or not they are based in the state. Notes in Washington state are similar to those in other states, but each geography has unique characteristics including how the housing market behaves and possibly unique laws. Fortunately for property owners and note holders, the Washington state real estate market has generally been less volatile and therefore more predictable than those in places like California and Florida. That said, properties everywhere are susceptible to national economic and real estate conditions to one degree or another.
A real estate note comes in to being when a property is sold using owner financing. The real estate note can also be called a mortgage note or deed of trust note, though they are basically the same for our purposes here. The note is the “I.O.U.” that shows the payment amounts, when the payments are due, the interest rate, what constitutes a default, and much more. A Washington mortgage buyer, like those in other states, is most interested in notes that are collateralized by a residential property like a house or condo, though most buyers will also purchase notes on commercial buildings and land. The elements of a good note are shown in two-minute video by Alan Noblitt of Seascape Capital. That video clip can be found at https://www.youtube.com/watch?v=UnJohC9HbOk.
The Mortgage Buying Process
While various note investors may vary slightly in their process of buying notes, the steps are most often:
- After the note buyer has the needed information about the property, the buyer and note holder come to an agreement on the price to be paid for the note
- Using information provided by the note holder, the buyer will check the credit of the note payer
- If credit is okay, the note holder would fax or e-mail to the buyer a set of documents which always include copies of the note, deed of trust, closing statement, and several other items
- Once the buyer has reviewed and approved the documents, they order a drive-by appraisal and a title report
- Once done, the note buyer would do the assignment documents and send them to the note holder for signature
- The note holder would return the documents along with the original note and deed of trust
- Once all of the above is complete, which usually takes 3-5 weeks, the note buyer would wire the funds to the note holder and record the assignment with the county
Seascape Capital Inc is a nationwide buyer of notes and a well-known Washington mortgage 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.