Earlier this year, I wrote about a mortgage Note buyer’s “buy box”—the criteria a seller has to meet in order for a buyer (or even a broker) to become interested in purchasing (or brokering) the Note.
For us, at Faller Financial, we focus on 6 things when evaluating a Note:
1. Property value
2. Loan to value (LTV)
3. Yield
4. Payment history
5. FICO score
6. Whether or not there’s been a modification or bankruptcy
That isn’t the extent of our evaluation but that’s basically our “box.”
Here, I want to spend 1.5 minutes helping any seller out there determine property value, or what some buyers refer to as the value band.
To estimate the value of your property, you can get fancy by hiring a real estate agent to do a comparative market analysis (CMA), and that will help. But for $0 you can also:
1. Use an online valuation tool (e.g., Zillow.com, Nerdwallet.com, Redfin.com, or Realtor.com).
2. Use the FHFA House Price Calculator (https://www.fhfa.gov/DataTools/Tools/Pages/HPI-Calculator.aspx)
3. Do your own “comp” analysis, comparing properties like yours.
I apologize if that took longer than 1.5 minutes. Your time is…h-hm…valuable (get it?…I’m writing about value and…[I’m a nerd]).
Keep checking in at fallerfinancial.com/note-resources to learn more and get smarter.
Call 844-433-6683 or email info@fallerfinancial.com to sell your mortgage Note, or request a consultation at fallerfinancial.com/contact.
Photo by Anne Nygard on Unsplash
