Note buyers
Amerinote Xchange
Amerinote Xchange is a loan acquisition firm in San Francisco that buys debt instruments on the secondary market nationwide. It purchases first and second mortgage notes, mortgage loan portfolios, non-performing mortgage notes, seller-financed land contracts, and seller-financed business notes, from private holders, institutional investors, lenders, and approved brokers.
A sale starts with a quote request by note type. Diligence includes a drive-by property appraisal, a review of the payment history, and ordering and reviewing a title report on the property securing the note. Offers are a percentage of the current unpaid principal balance, and the firm says it pays all costs and fees associated with the sale. Partial purchases are available, letting a holder sell part of the remaining payments and keep the rest of the income stream. The firm quotes average timelines of 15 to 23 business days for a residential mortgage note, 20 to 27 for a commercial note, and 10 to 15 for a business note.
The firm buys notes with remaining balances from $25,000 up to $5,000,000 on any one loan and funds through six in-house platforms, each geared to an asset class such as performing residential, performing commercial, and non-performing commercial loans. It reports funding over $800 million in residential and commercial unpaid principal balance since inception, more than 900 secondary market transactions since 2006, and a 96% closing ratio. Its office is at 201 Spear Street, San Francisco, with a business line at (800) 698-3650 and separate loan servicing and fax numbers.
Price depends on the loan terms, the borrower's ability to pay, and the collateral, so the written offer, the diligence conditions attached to it, and what happens if diligence changes the number are the things to pin down.
Best for
Holders of a seller-financed mortgage note, land contract, or business note with a remaining balance between $25,000 and $5,000,000 who want a lump sum, including holders who only want to sell part of the remaining payments.
What they do
- Purchase of seller-financed mortgage notes, first and second lien
- Mortgage loan portfolio acquisition
- Non-performing mortgage note purchases
- Seller-financed land contract purchases
- Business note purchases
- Partial note purchases
Details
| Attribute | Value |
|---|---|
| How they charge | The buyer pays all costs and fees associated with the sale, and offers are quoted as a percentage of the note's current unpaid principal balance. |
What stands out
- Reports funding over $800 million in residential and commercial unpaid principal balance since inception.
- Reports more than 900 secondary market transactions since 2006 and a 96% closing ratio.
- Buys notes with remaining balances from $25,000 up to $5,000,000 on any one loan.
- Funds through six in-house note-funding platforms, each geared to a specific asset class.
Common questions
- How much will I get for my note?
- The average mortgage or business note sells for between sixty-five and eighty-five cents on the dollar, and above-average notes, considered A+ paper, sell for between eighty-six and ninety-five cents. All offers are a percentage of the loan's remaining unpaid principal balance at the time it is contracted or sold.
- How long does a note purchase take?
- A residential mortgage note purchase averages 15 to 23 business days, a commercial note purchase 20 to 27 business days, and a business note purchase 10 to 15 business days, assuming nothing unusual surfaces during the process.
- Who pays the costs of the note purchase?
- Amerinote Xchange says it pays all costs and fees associated with the sale of a note, so selling a note does not cost the seller anything out of pocket. Diligence typically includes a drive-by property appraisal, a review of the payment history, and a title report on the property securing the note.
- Can I sell just a portion of my note?
- Yes. Partial purchase options let a holder sell a portion of the remaining payments rather than the entire note, taking a lump sum now while continuing to receive some future payments.
- How is the price of a note determined?
- Pricing rests on three factors: the loan terms, meaning rate, payback period, balloon payments, and clean records; the borrower's ability to pay; and the collateral securing the loan. A borrower with strong credit, typically 680 or above, is treated as lower risk and translates into a higher offer.