Finding a Seller Financed Mortgage

Where do you find a seller financed mortgage to buy or broker to another investor?

Hard money mortgages

Let's start out by learning what you probably shouldn't waste your time on.

Many privately owned mortgages are originated by private lenders. Usually as a high interest hard money mortgage.

It is unusual to get a discount when buying an existing hard money mortgage. A hard money mortgage is a mortgage made, often by a private investor, to a borrower where the lender did not originally own the real estate. To find out more about making hard money loans, click here. These loans are often at a low Loan to Value,  perhaps 65%, and are high interest, often 12-15% per year. If someone has invested, say $50,000 of their cash in a mortgage, it would be pretty silly of them to turn around and sell it for, say, $45,000. It can happen, but it is much less likely.

Public Records

It is possible to search through the public records at your local county courthouse. You should ask for the Official Records Department. There you will records either on microfilm or on a computer database. You can search these records free of charge but there will probably be a charge made for copying.

You might also be able to search through these documents on-line. Ask your local county courthouse.

Usually these records consist of an index file in book and page order and copies of the documents themselves.

Start with the index.

You are of course looking for Mortgages or Deeds of Trust that appear to be owned by private persons or companies. To see if these are seller financed it is usually possible to go back a page or two and look at real estate transfer document, such as a Warranty Deed or Quit Claim Deed. Compare the name of the seller in the Deed to the name of the lender. If they are the same then the mortgage is seller-financed. Is there another mortgage recorded after the deed but before the seller-held mortgage? This would indicate that this is a second mortgage. Usually the mortgage itself will also say if it is a second mortgage.

You should write down the Official Records Book and Page usually in the top right corner and then look for the document itself. You are going to look for the terms of the mortgage or deed of trust. Also the name and address of the mortgage owner.

As you can imagine this is a tiresome job.

You may also be able to buy lists of seller owned mortgages in your target areas.

More Ways to Find Seller Financed Mortgages

[Buying existing mortgages] [What is owner financing?] [3 advantages] [4 disadvantages] [Why people sell mortgages] [The effect of compounding] [Partial purchases] [Evaluating potential foreclosure] [First or second mortgages?] [Frequently asked questions] [Valuation seller-held mortgage] [The 5 Cs. Collateral] [5Cs. Credit and capacity.] [5Cs. Commitment and consistency] [Discounted mortgage calculator] [Mortgage credit  ratings] [Owner occupied real estate] [Non owner occupied real estate] [Commercial real estate] [Find seller financed mortgage] [Find owner financed mortgages (contd)] [On-line mortgage and note buyer database] [Legal questions] [Mortgage and deed of trust purchase contracts] [Final steps] [Mortgage fraud] [Paying for seller held mortgage] [American Cash Flow Association]

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