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Want to sell the mortgage note I'm carrying

1,179 922 February 14, 2018 at 05:17 AM in Finance (4)
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In 2013, I bought a foreclosure for $60k. Put about $12k into fixing it up.
Sold the house in summer 2014 for these terms:
$110,000. 30 years @ 6.0%. $7k down payment. It is administered through a local title company.

Here we are a few years later and I'm trying to sell the note. I've contacted 4-5 companies I found on a web search. Non of them are willing to buy the note from me. Mainly due to the note being 30 years, the buyers credit is in the low 500 score, and I only collected $7 as the down payment.

Any thoughts on a company that would be willing to purchase this note?

TIA

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#2
This is a subprime loan ...
You flipped the house and made money off the house and sold it to someone who shouldn't have been able to buy the house because they can't get approved for a standard mortgage from anyone. Now you want to fork the loan over to someone else realizing the person can't pay it back most likely ... we get it... this is what caused the financial crisis of 2008 LMAOLMAO

To be straight, noone in their right mind would buy the loan off you, too much risk for too little reward. Banks would rather put that money they'd give you in the stock market or lend out a business loan for a higher return and most likely less risk especially for a term of 30 years


If I was in your situation, I would of rented it to the buyer instead of selling it with a 30 year mortgage note backed by yourself. Think about it, you accepted less than 7% as a down payment ... >7% is standard rental deposit in my area (close to first and last) ...


If I was looking to buy the mortgage off you , the first thing that would trigger off my head is why would this person take less than 7% deposit on a 30 year mortgage.
Either he doesn't know what he did OR he is helping out a family member/friend with a cheap mortgage, just telling you the facts , sorry if I sound harsh
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Last edited by coolbeanz February 14, 2018 at 07:07 AM.
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I'll give you a $5 Amazon GC Big Grin
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#4
If you have a real estate question I would recommend you check out Bigger Pockets. A social media website devoted to everything real estate. You might even be able to find a buyer on there if you post the deal.



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Quote from robintrade
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In 2013, I bought a foreclosure for $60k. Put about $12k into fixing it up.
Sold the house in summer 2014 for these terms:
$110,000. 30 years @ 6.0%. $7k down payment. It is administered through a local title company.

Here we are a few years later and I'm trying to sell the note. I've contacted 4-5 companies I found on a web search. Non of them are willing to buy the note from me. Mainly due to the note being 30 years, the buyers credit is in the low 500 score, and I only collected $7 as the down payment.

Any thoughts on a company that would be willing to purchase this note?

TIA
I'd try putting it on Craigslist. Maybe already have.

Did you put anything in there that the buyer would have to eventually get a loan?

Just curious what changed that you wanted to carry it for 30 & now you want to sell the note.
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#7
what's the place worth now and what's their equity?

sorry but have to say..... what the fark were you thinking here?
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#8
people aren't smart
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#9
Wait, so you never collected one single payment beside the $7? Maybe I read the OP wrong.

Why not foreclose and start over?
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Quote from ZenNuts
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Wait, so you never collected one single payment beside the $7? Maybe I read the OP wrong.

Why not foreclose and start over?
from what he typed, you read it wrong.

cant foreclose if they are making payments

only option would be to find a private money lender and most likely will need to discount the loan
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for those that hate spelling mistakes www.walmarts.comCool

bulb save money by checking your insurance every 2 years (and not every 20) Thanks Liberty Mutual for reminding me to shop. The $842 increase this year sums it up. Across the board increase for Ohio....whatever
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#11
Assuming they are making the monthly payments, it is not the worst return on a 103k loan, so why not just hold it? Either they pay you off over the period or they default and you foreclose. 6% is better than the 1.5 you can get in the bank.

If you are trying to flip the mortgage because the buyer can't pay it back, then just foreclose when it happens and then you can rent the place out (which is what you should have done in the first place).

No one is likely going to buy that mortgage off you as others have noted. Terrible terms and unless you were trying to help out a family member or friend, I do not see why you even considered it, but that is water under the bridge as they say. As a general rule, one should never get into playing the role of the bank when doing real estate imo. Bad news and nothing but grief all round.
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Quote from YanksIn2009
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Assuming they are making the monthly payments, it is not the worst return on a 103k loan, so why not just hold it? Either they pay you off over the period or they default and you foreclose. 6% is better than the 1.5 you can get in the bank.

If you are trying to flip the mortgage because the buyer can't pay it back, then just foreclose when it happens and then you can rent the place out (which is what you should have done in the first place).

No one is likely going to buy that mortgage off you as others have noted. Terrible terms and unless you were trying to help out a family member or friend, I do not see why you even considered it, but that is water under the bridge as they say. As a general rule, one should never get into playing the role of the bank when doing real estate imo. Bad news and nothing but grief all round.
Not completely true.
He should have done a 3 year balloon note
8% or more or an adjustable rate. start at 6 and move to 8 after xx years. First 2 @6% next 3 at 8%, 5 year balloon.
Foreclosure is foreclosure, rent it out to recoup cost and then sell it.
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Quote from stufine
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Not completely true.
He should have done a 3 year balloon note
8% or more or an adjustable rate. start at 6 and move to 8 after xx years. First 2 @6% next 3 at 8%, 5 year balloon.
Foreclosure is foreclosure, rent it out to recoup cost and then sell it.

Balloon notes\terms are fine for what they are, but they are also pretty much a sure fire way to guarantee foreclosure imo, esp. if the bank will not do a loan\the buyer is not credit worthy. I just would not want to be in that business in any way, shape or form.
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#14
same as rental other than the cost of foreclosure.
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#15
Quote from LivninSC
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I'll give you a $5 Amazon GC Big Grin

Best deal you're going to get OP, I suggest you take it.
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