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Mortgage Noteholders - Helpful Hints
Many private noteholders are unaware of specific things
they have to do for compliance as well as should do in order
to maximize the protection and minimize the risk of their
asset. As a service to private mortgage noteholders, we have
provided some of the most important tasks a noteholder should
be doing.
Call
Us For a Free
Consultation or Quote at
1-877-655-5625
Announcement:
We have teamed up with numerous new investors. This allows
us to do many new types of note purchases. Following is a
partial list (Call if you have a private note that is not
on this partial list) - Non-Seasoned mortgage notes, Non-Performing
Mortgages, Simultaneous Closings (Buyer needs good credit
and 20% down), Second mortgages, 3rd mortgages, Business notes
without real estate, Partial Note Purchases, farm land notes,
church notes, defaulted mortgage notes, Accounts Receivables,
Raw Land, 2nd deed of trusts, Slow paying mortgage notes,
2nd Mortgages, Non Assignable injury settlements, Cell Tower
leases, Royalty payments, Water leases, Timber leases, Mineral
leases, Distressed Consumer Receivables, - Don't hesitate
to call if you have a note of any kind that is not on this
list.
- Monitor the mortgagor's property taxes to be sure
they are paid current. If the borrower gets behind in property
taxes, the noteholder could find themselves in the middle
of a property tax lien sale. In some cases a private noteholder
might want to intervene by paying the property taxes in
order to avoid this.
- Monitor the mortgagors homeowner's insurance to
be sure it is paid current. If the mortgagor has not paid
their homeowner's insurance and it has lapsed, the noteholder
should take out their own policy and have the mortgagor
pay for the cost monthly.
- Regularly check (annually if not semi-annually)
to be sure the mortgagor has sufficient homeowner's insurance
coverage to cover the mortgage and that the noteholder is
the Mortgagee.
- Inspect the home from the street a couple of times
a year, looking for serious signs of dis-repair. Some noteholders
have discovered that the mortgagor is not even living there
and is renting the home out to a friend or family member.
- When the mortgagor exibits a pattern of late payments,
check to see if the mortgagor(s) are still employed (Check
with your attorney on whether you can contact the mortgagor's
employer. You may just have to ask the mortgagor.). If they
are self-employed, stop by or drive their business to be
sure they are still in business or are advertising a going
out of business sign. This is particularly important if
these rough economic times with hundreds of thousands of
people loosing their job each month as well as thousands
of businesses closing their doors or filing for bankruptcy.
- Check the county tax records once or twice a year
for new liens on the property. This could be in the way
of a second mortgage which may not be allowed per the mortgage
note agreement, or a state or federal tax lien. Other types
of liens would be, workman's liens, utility liens, liens
from a lawsuit, etc.
- When the mortgagor defaults on the mortgage, contact
a qualified real estate attorney immediately. Don't try
to work something out between you and the mortgagor without
the advice of a qualified attorney.
- Be on the lookout for a pattern of late payments
even if the mortgagor is not in default. If you see such
a pattern, immediately research other potential problems
as covered above and take appropriate action.
- Be sure you are keeping detailed records of payments
on the note, including date of payment, chack number, returned
check information, amortization schedule, etc.. You will
need this in case of a dispute or a default as well as documentation
should you ever want to sell the note.
- Did you purchase a title policy at closing? If
not, you may want to purchase one now to cover your asset.
- Lastly if you are about to create a mortgage note,
consult with a mortgage note buyer so as to be sure the
terms allow you to get top dollar should you ever need to
sell the note. You also want to be sure and check credit
on the borrower.
The above helpful hints are not given as legal advice.
Please consult an attorney for all legal matters.
If
you have any questions on these hints,
feel
free to give us a call @ 1-877-655-5625.
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