Future Payments: The Basics

2007-03-08 10:33:40

( Financial )



Buying a house is a good investment. Most potential homeowners would get a mortgage to buy the house they want. Depending on the amount of down payment at the time of purchase, they may also be paying mortgage payment insurance in addition to their monthly dues. After a couple of years, if they decide to sell the house to a buyer who cannot afford lump sum payment, they have the option to receive future payments.

A mortgage note buyer is basically a person who can give you cash almost equivalent to the value of the future payments you are designed to receive from the person who bought your house. The note buyer will then be at the receiving end of your future payments. The person making the future payments will not change.

Mortgage note buyers can give you a big check for future payments of land contracts, promissory notes or even other mortgage notes. Most note buyers also work with duplexes, condominiums and apartment buildings. Bear in mind that not this arrangement may not be available for all available types of property. You can personally visit them to make sure they can accommodate your requirements.

It is profitable for mortgage note buyers because they have thousands of future payments coming in monthly and these payments add up to a considerable amount. They also do not mind waiting for a long time to collect full future payments.

Mortgage note buyers often have several programs available to suit your needs. A full purchase means all your future payments will be forwarded to the note buyer in exchange for lump sum of cash. A partial purchase means a specified number of future payments in exchange for cash and a split payment purchase means only a specified monthly amount is forwarded to the note buyer.


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