The Note Buyer

2007-03-08 10:33:40

( Financial )



Notes in General
Loans, mortgages, chattel mortgages, pledges, and other debts can all be embodied by legal documents. Ownership of the rights to payments for these debts are often proven by notes. A legitimate transferee of these notes will have every right to seek payment of the loan or other debt.

The Note Buyer
A note buyer is an individual or corporation that is in the business of purchasing notes. The note buyer will purchase the instrument from the holder, usually offering less than the principal amount plus interest, so that a profit can be made from collecting the debt. Note buyers make money by buying at a discount, and holders will usually agree to a discounted price because it offers the money immediately.

Who Would Want to Sell Notes?
Any individual or corporation that holds notes may wish to sell them in order to receive money immediately. Note buyers may also wish to sell notes that they were able to buy at exceptionally low prices, so as to make an immediate profit to invest in buying more notes.

Note Buyers Online
Note buyers often advertise their offers online, giving the opportunity to receive a quick quotation from the corporation, and giving other benefits to entice the people willing to sell notes. For instance, some note buyers will even offer free vacation trips as part of an agreement to sell highly valuable mortgages on prime real estate. A wise note buyer knows that if a person is willing to part with a valuable note for a discount, great profits are forthcoming.

Mortgage Note Buyers
Mortgage note buyers specialize in the purchase of notes evidencing ownership of a mortgage, and the rights to collect the amortizations. Mortgage notes may be of specific value because in the event of non-payment and subsequent foreclosure, the land covered will be auctioned. In this auction, the note buyer may bid for the land, and if a successful purchase is made, the land would have been conveyed at a discount, and later may be sold for great profits.


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