Mortgage notes are promissory notes that are secured by a specified mortgage loan and contain the promise from a borrower to a lender to fulfil a legal obligation. They are legal documents that contain the terms of agreement for the payment of a loan including details of the identity of the borrower and lender, the amount borrowed, interest rate, repayment plans, and consequences of a default. It confers legal rights to the lender to be able to take legal actions against the borrower. 

Mortgage notes can be sold for lump sums of money. They are also kept for investment purposes since they can ensure a constant stream of income. Knowing the different types of mortgage notes is important to know what kind of mortgage note you’re holding and the terms that define it.

At Simanda Investments, LLC, they ensure that you get clarity on everything related to mortgages, purchase and sales of mortgage notes and everything you need to make wise financial decisions.

What Are The Different Types of Mortgage Notes?

The type of mortgage note depends on the type of mortgage loan which it binds.

Secured Loans 

These types of loans use assets as collateral, hence the loans are secured by the assets. The mortgage may include lower interest rates and longer payment terms which makes it easier for the borrower to pay back. The lender also takes a lesser financial risk with secured loans since the assets can be claimed in the event of a default in payment.

Private Loans 

Private loans are ones in which the lender owns the property completely. This gives the lender absolute authority over the terms of the loan with very little regulation. They are also called owner-financed loans.

Institutional Loans

This is the type of loan from a traditional mortgage lender or bank. This type of loan is usually heavily regulated and the terms of the agreement must be strictly adhered to. They have standard interest rates and payment plans. 

Where To Sell Your Mortgage Notes

When the lender doesn’t want to wait for payments or is in urgent need of cash, the mortgage note can be sold for a lump sum of cash. This transfers the legal claim to the buyer of the mortgage note. Before the mortgage note is sold, the borrower must be informed, the only difference it makes to the borrower is to whom and where to make their payments. 

Simanda Investment LLC is a top-tier financial investment company owned by Simon White that deals in buying and selling mortgage notes, promissory notes and business notes. They offer the best rates for real estate, real estate notes and business notes. 

At Simanda Investment LLC, they help you through the process of selling your mortgage notes, offering a FREE evaluation of your mortgage notes and making you an irresistible offer without capitalizing on your need for money.

To get your mortgage notes evaluated and sold or if you’d like to purchase a mortgage note, visit their website for more information.