Today, in this latest entry in our Note Investing 101 series, we’ll go over the nature of the secondary market for mortgage notes: who are the sellers, and why are they selling?
Historically, the secondary market is where all types of investors and financial institutions have bought and sold mortgage notes. When a mortgage originator (such as a bank or a mortgage company like Countrywide Financial) makes a home loan, they can either keep the loan on their books, or, more often than not, they can try to sell the note as a financial instrument on the secondary market. In addition to mortgage originators, there are also companies such as investment banks, hedge funds and equity funds who are looking to sell loans that they themselves had bought on the secondary market.
So why are these institutions selling their notes? After the subprime mortgage meltdown, most of the traditional secondary market buyers, such as pension funds, hedge funds and investment banks, abruptly left the table. Suddenly, supply far exceeded demand on the secondary market. As a result, sellers have been left with hundreds, and in many cases thousands, of mortgage notes that they would quickly like to clean off their balance sheets. This means unprecedented deals for every BigBidder.com investor.
Next up on the Note Investing 101 agenda, we’ll answer that all-important question: why should you invest in mortgage notes?
To read up on previous posts in this series, click the links below.
Note Investing 101
January 31st, 2012 at 8:53 am
Dear Sir / Madam,
Hoping very fine, please can you use your good office for me to help my clients with their below request.
Hope to hear from you soon,
Thanks,
Emmanuel
DEAR ,
HOPING VERY FINE, WE HAVE TRIED SEVERAL
TIMES TO CLOSE FINANCIAL INSTRUMENTS BUT
UP TO NOW NO HEAR WAY, PLEASE JUST TALKED
TO THE BELOW BUYER,PLEASE SEE IF WE CAN
CLOSE A DEAL FOR THE BELOW REQUEST.
THANKS,
EMMANUEL
Emmanuel,
We purchase 1st & 2nd position Notes, Mortgages, Deed of Trust, Contracts, Land contracts, & Contract for Deed secured by Real Estate.
Eden / Robert
Dear Sir / Madam,,
Please, just had the below remarks from one of my providers from USA
with an attached FPA,Please if you are interested send me your details
to link you to Mr. Jim.
Thanks,
Emmanuel.
Emmanuel,
Non-Performing Church Note for Sale
We have been engaged by the lender to sell this Non -Performing Note
Connecticut Church Note
The note is secured by a church on 12.30 acres of R-33 zoned land in
north central CT. The church building consists of 5,670 total gross
building area. The church was built in 2007. The sanctuary is 2730 sq
ft, fellowship hall 1215 sq ft, 990 sq ft classroom and 735 sq ft
office.
This is a creative way for your clients to acquire a church at far
below the appraised value.
We are selling the note and not the real estate.
Jim
fairconsultant@gmail.com