I'm looking to sell a mortgage note. I understand that to sell it I may have to sell at a discount. What is the typical discount? The borrower always pays on time and never had problem paying. Would like to get an idea of how much to sell it for.
lots of variables.. but if you know how to do PV calculations on the calculator..
most investors want to make between 9 and 20 plus % return apr wise.
so just put your note in and then put in a return you think an investor would accept for you note and the computer will give you the present value .. and that is what you will probably get for the note in the open market.
you can list on FCI exchange they charge somthing to do that
Thank you! I will look into this.
As Jay mentioned many factors.
Also the state and if it is being serviced by a licensed servicer makes a big difference
Hi my name is Shunda and buys notes maybe I can help you.
@Patricia Mercado , all of the advice given is a great jumping off point.
@Jay Hinrichs is right, most of the one off investors are looking for very high yields and the discount you will take all depends on the interest rate, LTV, pay history, quality of the underlying collateral etc. On our platform, we have few buyers that are paying close to par on assets that meet their buying criteria. We have a buyer that is will bid assets at an 8.5% yield if the borrower has a 620 or higher is 12 of 12 and has 13-15% equity, the bid goes up from there.
And as @Chris Seveney stated, if the loan is being professionally serviced, it is a big bonus.
I may be interested in purchasing the note if you want to send me the details.
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