Discover How to Sell a Mortgage Note & Create Maximum Value

How to Maximize Your Mortgage Note’s Value With Iron Clad Record Keeping

December 4, 2018

Ok… this is ONE of the VIP tips that most note seller’s value the most. How to maximize your mortgage note’s value by simply keeping good payment records. Can’t get much easier than that can it?

Simply put, keeping a detailed, well-organized and legible payment record showing the date each payment was received, and a breakdown of the principal, interest and late charge for each amount received is important to maintaining the value of your mortgage note.

If you ever decide to sell your real estate note or contract for deed, you will be required to show the mortgage payment history to a prospective note buyer so the note buyer can verify the payment patterns of the note payor.

If the payments on a “seasoned” note, which is a note with a payment history over an extended period, have been made consistently on time, the value of the note will be greater than if the payments have been late or delinquent because the perceived risk of the note is lower.

Use the payment record sheet in the back of “The Note Holder’s Guide” to keep a record of your note payment history. If you don’t have it, click here to get the Mortgage Note Holder’s Guide. Also, make sure to print out an amortization table for your loan amount. Go to www.bankrate.com to obtain a printable amortization schedule.

Another good way to keep good record keeping of your mortgage note payment history is to use a mortgage servicer for your mortgage note. That way you’ll have a professional record of your mortgage note’s payment history. This is even better than keeping your own records so definitely consider that if you want to maximize your mortgage note’s value.

As you know by now, I’m a professional mortgage note buyer. If you’d like to sell a mortgage note, simply get in touch through the contact me page.

Thanks for checking out this latest post from sell my mortgage note for cash

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Discover How to Sell a Mortgage Note & Create Maximum Value Mortgage Note Safety

How To Keep Your Mortgage Note Storage To Maximize Its Value

December 1, 2018

Hey again and thank your for visiting SellMyMortgageNoteForCash.com. I’m glad you’re here to learn on Mortgage Note Storage and hoping you are enjoying this tutorial series of blog posts regarding selling your mortgage note.

How To Keep Your Mortgage Note Storage To Maximize Its Value

Today we are going to talk about an overlooked aspect of creating and managing mortgage notes; mortgage note storage!

Sounds pretty boring I know. In fact, it’s a subject overlooked very often in the real estate mortgage business but it shouldn’t be because it’s pretty damn important.

Truth is, if you create a mortgage note but have horrible administration skills in regards to keeping the documents safe, you may as well not even create a mortgage note. How come you ask?

Because the mortgage note and the documents you create in conjunction with it are the documents that keep your interest and ownership safe. Without proper documentation you no longer have an asset of value but rather useless pieces of paper you can’t do anything with.

Now that you realize the documents created are where the true value lies, how should you protect them?

My advice is to keep your original note in a safe place such as a safe deposit box or a fireproof safe in your home. Make a photocopy to keep with your trust deed and other escrow papers but keep the originals in a safe deposit box.

There are two reasons for this precaution.

First, the note is not recorded in the county recorder’s office. The deed of trust is. If you lost your deed of trust, you could simply get another copy at the recorder’s office.

Second, your note is a negotiable instrument which means it can be endorsed on the back just like a check. And also just like the title of your car. You wouldn’t keep an un-cashed check or the title of your car lying around for someone else to easily steal would you?

As such, make sure you properly store and house your mortgage note paperwork as well because just like an un-cashed check and the title of your car, the documents are a very important asset.

I hope you enjoyed this post and now have a better understanding of how important it is to keep your mortgage note documents safe. Thank you for visiting Sell My Mortgage Note For Cash.

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Discover How to Sell a Mortgage Note & Create Maximum Value How Much Is A Mortgage Note

Mortgage Note Safety – What exactly is Loan to Value and why it’s important.

November 19, 2018

Mortgage Loan To Value | Its Importance And Why

Welcome to yet another tip from sell my mortgage note for cash. What exactly is the Mortgage Loan to Value and why is it important?

Today we are going to discuss one of those acronyms in the Mortgage Note world that sometimes people get confused about. Truth be told, it’s quite simple to understand really and if you’re going to get involved in mortgage notes in any way, it’s very important you understand this concept.

So today we are going to be talking about Mortgage Note Safety and the mortgage note’s loan to value ratio… aka LTV.

Simply put… a low loan-to-value ratio makes your note safer and increases its resale value.

But what exactly is the loan-to-value ratio…aka LTV?

The loan-to-value ratio for your note is the sum of the current loan balance(s) for your loan and all senior loans divided by the current market value of the property securing the note.

Here are 2 scenarios.

(Scenario 1)
Loan Amount – 1st Lien Position = $100,000
Loan Amount – 2nd Lien Position = $0 (n/a)
Market Value of Property = $200,000

Loan to Value Ratio = 50% (100,000 / 200,000)

(Scenario 2)
Loan Amount – 1st Lien Position = $100,000
Loan Amount – 2nd Lien Position = $44,000
Market Value of Property = $200,000

Loan to Value Ratio = 72% (144,000 / 200,000)

In general… the lower your LTV, the more valuable your note.

Why?

Simple… the lower the LTV the more equity there is in the property. Equity is simply defined as the difference between the market value of the home and the loans against it.

For example, let’s assume the home is worth $100,000 and there are 2 mortgages against the house equaling $65,000. In this case, the equity is simply $35,000 which is the difference between $100,000 and $65,000.

With $35,000 in equity, investing in this mortgage note is way safer than investing in one that only has $5,000 in equity.

Assume the home is worth $100,000 but this time the mortgages against the property equal $95,000. In that scenario, there is only $5,000 of equity which means… if someone buys this note, there is only a $5,000 cushion in the home’s value before the amount owed against the home is more than the home’s value itself.

That’s a scary situation for mortgage note investors because home values can easily fluctuate $5,000 but it’s harder for them to drop $35,000 in value. As such, the note against the home with $35,000 in equity is a way safer mortgage note investment than the one with only $5,000 in equity.

In LTV terms, the safer investment discussed above has an LTV of 65% as opposed to the more risky mortgage note LTV of 95%.

In summary, the LTV of your note and deed of trust on the property (first position, second position, etc.) is critical to the note’s value. The lower the LTV the more attractive of a mortgage note you have.

Thank you for reading and I hope this explains Loan to Value a little better. Be on the look out for my next tip here at Sell My Mortgage Note for Cash.