Archive for November, 2013

HOUSING MARKET SLOWS, NOTE SALES SLOW AS WELL

Monday, November 25th, 2013

With the government shutdown last month and interest rates taking a slight uptick (even though they are still near historic lows), the housing market is the slowest since October 2012. This means that sellers will have to be more creative in order to get their properties to sell. In the past some sellers have carried their own financing in order to entice buyers to purchase their properties, this is not the case during this period.

Our firm purchases the lists of sellers that carry back a loan on the sale of their properties. In times past the number of sellers carrying loans back were in the thousands per month. It has been a steady decline since we have been conducting business. Today just a few dozen per month carry back a loan in the 5 Southern California Counties that we purchase.

Less paper out there being generated slows Note sales. The good thing about our business is that we can draw from notes drawn last year, the year before, the year before that, etc. We are constantantly on the lookout for loans that are seasoned. Seasoned notes are more desirable due to having a track record of good payment histories. Often we see notes that are 4 or more years old. While we pay top dollar for all the notes we buy, ones that are seasoned are likely to have smaller discounts because they have less time until maturity and they are established with good payment histories.

Whatever kind of Note you have, we would like to hear from you. A no obligation quote on what your loan is worth is just a call or a click away. Thanks for reading our blog.