Note Criteria

Purchase Of Seller Held Mortgages Residential

PROPERTY TYPES:

1-4 family homes, condominiums, townhouses and mobile homes with land

LOCATIONS:

Nationwide

CREDIT QUALITY:

Usually credit of B plus or better. However, we offer a specific program where derogatory credit is NEVER an issue. We will consider all other credit profiles on an individual case by case basis. Call for details as we invest in many files with questionable credit and other peculiar “quirks”.

SEASONING:

No seasoning required. We will fund purchases simultaneously with the sale of the real property.

OCCUPANCY:

Great Note America purchases both owner and non-owner occupied residential real estate secured notes.

TYPICAL INVESTMENT
TO VALUE RANGE: INVESTMENT TO VALUE (ITV) MAXIMUM:

Investment To Value (ITV) Maximum

1 to 4 family, owner occupied

75% - 90% +/-

Mobile Home plus lot & improvements

75% - 85% +/-

Condo/Townhouse, owner occupied

75% - 85% +/-

LAND VALUE:

Land value must be no greater than 40% of the total value of the property. Recreational properties such as a golf course and lake front properties will be considered individually on a case by case basis.

POSITION OF NOTE:

Will purchase both first and second position notes and wraparound notes (AID’S). On wraparounds, the underlying mortgage lien usually must be paid off prior to or at closing. Occasionally, we will consider keeping that loan in place and continue to service it. However, there must be substantial equity within the “wrap”.

PURCHASE TERMS:

Up to 40 years.

PREMIUMS:

GREAT NOTE AMERICA will not pay a premium regardless of the note rate. We will always purchase at some discount.

LAND CONTRACTS / CONTRACTS FOR DEED:

We will purchase land contracts, agreements for deed, or real estates contracts in any state. Occasionally these may require conversion to a mortgage and note type security instrument before closing. Pre-approval prior to conversion is permitted. Call for particulars.

COMMITMENT TIME:

GREAT NOTE AMERICA can usually provide preliminary pricing within 24 hours if sufficient information and details are submitted.

ORIGINAL NOTE:

If applicable, please be certain that the “ORIGINAL NOTE” is available to be endorsed at the time of closing.

BALLOON PRICING:

Final balloon payment should not exceed 80% of current market value or sales price (if within one year of purchase). Other files considered on a case by case basis.

PROPERTY VALUES:

Minimum property value is usually $25,000.00 - others considered on a case by case basis. Subject property color photographs are always suggested.

MINIMUM / MAXIMUM NOTE PURCHASE:

$10,000 TO $500,000

Purchase Of Seller Held Mortgages Small Commercial

PROPERTY TYPES:

Select retail, multi-family, mixed-use properties, professional offices, residential/office conversion, and restaurants, mobile home parks, land, etc.

LOCATIONS:

Nationwide.

CREDIT QUALITY:

Usually credit of B plus or better. We will consider others on a case by case basis.

SEASONING:

No seasoning required.

OCCUPANCY:

GREAT NOTE AMERICA purchases both owner user occupied and non-owner occupied investment commercial real estate secured notes.

INVESTMENT TO VALUE (ITV):

GREAT NOTE AMERICA’S investment maximum is 70% of the value or the real estate.

PURCHASE TERM:

GREAT NOTE AMERICA will purchase up to a 360-month term depending on the transaction. Our preference is to purchase terms of 180 months or less. We can purchase either the full note or a partial interest in the note.

LAND CONTRACTS / CONTRACT FOR DEED:

We will purchase land contracts, agreements for deed, or real estate contracts in any state. Occasionally, these may require conversion to a mortgage and note before closing. Pre-approval prior to conversion is permitted. Call for particulars.

COMMITMENT TIME:

GREAT NOTE AMERICA can usually provide preliminary pricing within 24 hours if sufficient information and details are submitted.

BALLOON PRICING:

Final balloon payment should not exceed 70% of current market value or sales price (if within one year of purchase).

PROPERTY VALUES:

Minimum property value is $30,000.00.

MINIMUM / MAXIMUM NOTE PURCHASE:

$25,000 to $1,000,000 (can purchase larger
Transactions - call for details)

Purchase Of Seller Held Mortgages Land

LAND COLLATERAL PROPERTY TYPES:

Improved Land Lots – these are buildable lots typically less than 5 acres in size that have all utilities in place

Improved Land Parcels – this type of parcel would have sewer, water, electric available to its site ,it would be cleared, with perhaps some road frontage, and zoned for residential and / or commercial use

Unimproved Land or Raw Land – this is a land parcel that little if any improvements to it and may be simply raw acreage

LOCATIONS:

Nationwide

CREDIT QUALITY:

Usually credit of B plus or better. However, we like to price files on a case by case basis, taking into consideration the individual merits and risks of the transaction, Call for details as we invest in many files with questionable credit and other peculiar "quirks".

SEASONING:

No seasoning required. We will fund purchases simultaneously with the sale of the real property.

SURVEYS:

If a survey or aerial photograph exists of the subject land parcel that is always helpful

TYPICAL INVESTMENT
TO VALUE RANGE:

INVESTMENT TO VALUE (ITV) MAXIMUM:

Investment To Value (ITV) Maximum

Improved Land Lots

Up to 75%

Improved Land Parcels

65% - 70% +/-

Unimproved Land – Raw Land

50% - 55% +/-

LAND USE & VALUE:

The Land collateral must have inherent value based upon its intended use, and other similar comparable sales in the vicinity of the collateral. Speculative Land parcels slated for future development will be considered on a case by case basis

POSITION OF NOTE:

Typically on Land type collateral we will purchase only first lien position notes and wraparound notes (AID'S). On wraparounds, the underlying mortgage lien usually must be paid off prior to or at closing. Occasionally, we will consider keeping that loan in place and continue to service it. However, there must be substantial equity within the "wrap".

PURCHASE TERMS:

Up to 40 years.

PREMIUMS:

GREAT NOTE AMERICA will not pay a premium regardless of the note rate. We will always purchase at some discount.

CLOSING COSTS:

Generally, the following closing costs are paid by the submitting correspondent broker: appraisal, mortgagee / lenders title policy or update, and recording fees. However, we will price files both in a GROSS and NET dollar payout fashion. Our issued approval notice or commitment to you will reflect this.

LAND CONTRACTS / CONTRACTS FOR DEED:

We will purchase land contracts, agreements for deed, or real estates contracts in any state. Occasionally these may require conversion to a mortgage and note type security instrument before closing. Pre-approval prior to conversion is permitted. Call for particulars.

COMMITMENT TIME:

GREAT NOTE AMERICA can usually provide preliminary pricing within 24 hours if sufficient information and details are submitted.

ORIGINAL NOTE:

If applicable, please be certain that the "ORIGINAL NOTE" is available to be endorsed at the time of closing.

BALLOON PRICING:

Final balloon payment should not exceed 80% of current market value or sales price (if within one year of purchase). Other files considered on a case by case basis.

PROPERTY VALUES:

Minimum property value is usually $25,000.00 - others considered on a case by case basis. Subject property color photographs are always suggested.

MINIMUM / MAXIMUM NOTE PURCHASE:

$10,000 TO $500,000

DOWNLOAD INFORMATION REQUEST FORM - PRINTABLE VERSION HERE (PDF)

Information Request Form

CORRESPONDENT DOCUMENTATION CHECKLIST

TO EXPEDITE THE PROCESSING OF YOUR CUSTOMERS NOTE SALE WE WILL NEED THE FOLLOWING:
(to avoid delay please provide legible copies)

1. A copy of the closing statement when property was sold, showing disbursement of funds (HUD settlement statement, etc.).
2. Copies of the actual note & mortgage security instruments - Recorded Copies, if available.
3. Note sellers Loan amortization schedule, if available.
4. A copy of borrowers hazard (fire) insurance policy, naming the note holder as a loss payee or mortgagee.
5. A copy of a commitment for a Lenders title insurance policy, or the actual Lenders title policy issued at the time of closing on the sale of the property
6. If this is a contract for deed or agreement for deed type of security instrument, we would like to have a copy of the actual warranty deeds, if available.
7. Copy of buyers/sellers sales contract, if available. (Prefer on commercial deals)
8. Photographs, sales brochure, property brief, previous survey or anything that is available describing the property (if available - location map, previous appraisal, property income and expense, information). NOTE: We Must have color on all commercial property types.
9. Financial and Personal information about the Mortgagor(s), such as their name(s), address(es), social security number(s) and phone number(s), if available.
10. Employment information on Payor's, if available. (Employers name, address, phone #)
11. A running record of the payment history in connection with the purchase money security instrument. If available: a payment ledger, or Payor canceled checks, or note seller bank deposit slips, or actual bank statements. Even postmarked envelopes are O.K.
12. If the instrument is serviced though a third party collection agent, please provide their name, address, account number, and phone number.
13. If a correspondent, a copy of your signed purchase agreement or option agreement with the note seller.

In addition to the foregoing, if the purchase money mortgage is a junior

(2nd, 3rd) mortgage, the following items should also be in the package:

1. Name and address of any holders of senior mortgages.
2. Account number or any identification that is used to retrieve information when needed. 3. Detailed information about the amount, method of payment, interest rate, and escrow provisions in regard to the senior mortgages (an exact copy of the mortgage and note if available).

PROPERTY TYPES:	Select retail, multi-family, mixed-use properties, professional offices, residential/office conversion, and restaurants, mobile home parks, land, etc.
LOCATIONS:	Nationwide.
CREDIT QUALITY:	Usually credit of B plus or better. We will consider others on a case by case basis.
SEASONING:	No seasoning required.
OCCUPANCY:	GREAT NOTE AMERICA purchases both owner user occupied and non-owner occupied investment commercial real estate secured notes.
INVESTMENT TO VALUE (ITV):	GREAT NOTE AMERICA’S investment maximum is 70% of the value or the real estate.
PURCHASE TERM:	GREAT NOTE AMERICA will purchase up to a 360-month term depending on the transaction. Our preference is to purchase terms of 180 months or less. We can purchase either the full note or a partial interest in the note.
LAND CONTRACTS / CONTRACT FOR DEED:	We will purchase land contracts, agreements for deed, or real estate contracts in any state. Occasionally, these may require conversion to a mortgage and note before closing. Pre-approval prior to conversion is permitted. Call for particulars.
COMMITMENT TIME:	GREAT NOTE AMERICA can usually provide preliminary pricing within 24 hours if sufficient information and details are submitted.
BALLOON PRICING:	Final balloon payment should not exceed 70% of current market value or sales price (if within one year of purchase).
PROPERTY VALUES:	Minimum property value is $30,000.00.
MINIMUM / MAXIMUM NOTE PURCHASE:	$25,000 to $1,000,000 (can purchase larger Transactions - call for details)