| Buying Mortgage Notes-Why Would A Lender of Bank Rep Sell? |
| Articles - Mortgage |
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I want to share some valuable information with you. Recently I was asked the question below:
I want to share some valuable information with you. Recently I was asked the question below: "I've been reading everything I can about why lenders would be willing to sell properties at large discounts... Dean, what would be a lender's main concern which would get them to sell mortgage notes at deep discounts? I feel that since we're trying to get into the minds of the LMREP, it would be more advantageous to all, if we could sell our services to their main concerns". This was my reply: You need to be clear (both in your language and the way you think) about the difference between properties and mortgage notes. In your question, you mentioned both of these. If you used this same language when making your call to the bank rep. I can guarantee that they would probably brush you off. In their minds, you are probably just a some knucklhead that doesn't know the difference between a deed of trust and a deed. You can bet that you won't be getting further repsonses from them. Buying Mortgage Notes - Tip Study your lingo, and make sure you know it before you try contacting your lenders: You get one chance to make a good first impression, when you're talking to the key person/gatekeeper when buying mortgage notes. How is that for wisdom? A few reasons: Reasons to Sell Mortgage Notes at the Institutional-Level a) banks may be merging or have annual reports that are due, and selling off the notes is the fastest way to clear assets. b) maybe a relationship already exists between the bank and the borrower, or some situation like that. c) in certain cases, the bank might now want to foreclose on borrowers because of the negative press they will get. These actions may affect their public image. d) bank may not want to actually take borrowers to sale, though having no trouble with foreclosure procedures. (I've often found myself in the position of buying mortgage notes from a bank 1 week prior to sale because they didn't want to be seen carrying out the actual foreclosure) e) the loan can be negative equity, and the banks dont want the recovery action/expense. (small loans amounts might never be foreclosed on because the expenses are too high, this is a fantastic opportunity in buying mortgage notes) f) bank wants to "price" a part or all of its non-performing book, in which case it sends out loans to bid to see what the market would pay for them. Individual Reps- Reason to Sell Mortgage Notes a) Borrowers can be flaky, they won't follow through on payments, or just unwilling to work with the bank. The loss mitigation rep does not want to work them anymore as well. b) they cannot get in touch with borrowers c) long foreclosure state/process e) authorization over certain write offs and mortgage note sales is within the rep or their direct managers authorization. When required to go to upper managment for aprovals the process is lengthened...so in those cases they may pass. f) the rep might be shooting for their monthly bonus and sell off some mortgage notes to reach this. Sometimes it could just be a matter of meetin a monthly quota. Hope this information helps you. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Interested in learning more about the Discounted Mortgage Business? Watch Hours of FREE Training Videos here: Buying Real Estate Notes Real-life, Up-to-Date Information for You. Visit NoteBuyingProfits.com or Call 718-783-7605 Or Click Here: Buying Real Estate Notes From Dean Engle & NoteBuyingProfits.com - This time on Buying Mortgage Notes |