help buying note?

evaluate the house, what paperwork, etc?

Do I need to be in the academy for that?

Do you have to know the property at all? Yes I would like any info you can send Eric. Thanks all, Tammy

You need to know whether you're dealing with pretty or ugly paper (meaning the note is either performing or non-performing respectively). Next, you need to know the terms of the note (ie the number of payments left, interest rate, amount of the monthly payment, the present value, and the future value).

Payment history and seasoning are relevant if you're dealing with pretty paper; whereas, the value of the collateral asset (or property) is more relevant for ugly paper.

Although a "big" discount could be a good thing, you need to determine whether or not that discount makes sense to you. Each note buyer has his/her own set of buying criteria.

Here is what your note buyer/investor will initially want to know about the note.

Type of Property –

Payor’s Credit –

Property value –

How was value established? (BPO, Comps, Appraisal)

Owner occupied?

Sales Date –

Sales Price –

Down Payment –

City/State –

Face Value of note for sale –

Type of Note - Interest Only or Amortizing

Interest Rate –

Term -

Note balance –

Payment Amount –

Number of Payments made –

When was 1st payment made –

Number of remaining payments –

Next payment due date –

Loan to Value % –

Current/Delinquent?

12 month pay history –

Balloon Payment (Amount/Due date) –

Position of Note –

1st remaining balance –

2nd remaining balance –

Additonal Clauses - Late payment, First right of refusal, etc.

If you don't have a financial calculator, here is a web site where you can run an amortization schedule to check the note holders numbers
http://www.calculators4mortgages.com/mortgage-calculator/amortization-sc...

The trick is to find an actual end buyer. The note business is full of daisy chains.

Thank you for that abundance of information, which tells me I am not in the note buying business at this time. I have a lot of studying to do, and I would need cash as well. Thanks so much, and thank you Eric for the pm. Tammy