Let's face it, no one buys a real estate mortgage or creates an owner financed note in hopes that the payments stop coming in. Although not the norm, payers do default on notes, stop paying, get behind on payments, or outright walk away from the property. It goes without saying that you should always comply with all debt collection laws when dealing with a borrower/payer that gets behind on … [Read more...]
What are ‘Face Rates’ and ‘Discounts’ On Notes?
If you're interested in seller financing or ready to sell your note, the terms 'face rates' and 'discounts' are probably words you have heard thrown around. If they aren't, here's an important quick overview. What is the Face Rate of a Note? Also known as the 'present value,' the face rate is simply the interest rate on the note and mortgage. The ideal face rate for a note depends on which party … [Read more...]
Avoid Three Seller Financing Mistakes
Would you rather have $97,000 to sell your $100,000 note or only $80,000? The difference in usually comes down to the big three. Here’s the three biggest mistakes note sellers make and how to avoid flushing money down the drain. Mistake #1 -- Failing to Check Credit The payer's credit report lets you know how timely they have paid bills in the past. This is a good indicator of how they will pay … [Read more...]