How to Buy Mortgages
A little research and diligence can show any potential investor how to buy a mortgage, as well as where to find mortgages to purchase.
Find mortgages.
* Prospective investors can advertise in local papers that they will purchase mortgages for cash.
* Investors can also perform a public records search to find mortgage holders. Make friends with someone in the appropriate department of the county. The appropriate department will vary from county to county; start at the property appraiser’s office and ask which department records mortgages. That’s where investors should start their public records search.
* If an investor finds a property that looks appealing, she can send a letter to the address, expressing an interest in purchasing the property. Alternatively, she can look up the mortgage holder through the property appraiser’s office and send the letter directly to him.
Perform due diligence.
* Inspect the property. Hire a professional inspection company to make sure it’s worth the amount of the mortgage.
* Examine the payment history to make sure the mortgage is not in default. Be very careful not to buy someone else’s headache.
* Get a credit history on the borrower. This can protect an investor from buying a mortgage where the borrower is a poor risk.
* Perform a title search to make sure no other party can lay claim to the property.
First Time Buyer Mortgage Application Guide
Category: Mortgage application
