SELL A MORTGAGE OR BUSINESS NOTE TO A DIRECT NOTE BUYER
The start of the
private mortgage note industry — and
thus the secondary industry of mortgage note buyers — begins with the birth of the modern American mortgage.The
mortgage as we know it, with the standard 20 percent down and payments spanning
15 to 30 years, has only been around since the 1930s. Before then, people would
put 50 percent down on a property and be required to pay the loan back in five
years. Then President Franklin Roosevelt passed legislation in the 1930s
nicknamed the New Deal, which, among other things, established the Federal
Housing Administration. That new agency, the FHA, created what’s now considered
the industry standard 30-year mortgage.
Private mortgages have
popular to keep resources in a family or community. If one relative has a piece
of property, he or she can sell it to a family member. That family member pays
the private mortgage to the relative, who gets the benefit of the interest on the
loan, instead of that money going to a bank.
The same process worked
for commercial properties. If a farmer wanted to sell an adjacent field to his
neighbor, he could with a trust deed, all while earning a moderate interest.
At first, only
individual investors purchased mortgage notes. But as private mortgages
increased, so did the number of investors. With real estate having a reputation
as a safe investment, and mortgage notes and deeds in trust being
collateralized by real estate, more and more investors realized it was a good
business opportunity. Just as people turned to private mortgages for different
reasons, they turned to note buyers
for several reasons.
Selling a mortgage note
is a serious financial matter that a note owner should enter into with a
reputable buying company. At notesbuyers.com,
we connect you to an experienced professional, with decades of experience
purchasing mortgage notes, business notes and deeds of trust. Our partner takes
a “look-at-everything approach” and has offered quotes to unique notes of all
shapes and sizes. You also get a dedicated sales representative for the entire
process.
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