Secondary markets are like stock exchanges places where investors buy assets or securities from other investors or individuals rather than from the companies. This allows them to negotiate and get profitable deals than primary markets. One of the most famous and profitable investments in secondary markets is investment in non-performing mortgage notes; these investments help banks or money lenders get a slump sum amount for their non performing mortgage notes and lets them use money for other investments.
When buyer invests in property with limited funds and some amount of loan from bank or the owner itself he needs to present his current property or any other asset as collateral. It helps the lender be rest assured of any loss in future. Since property purchase and sale involves huge investments and money transactions, this calls for legal documentation and proofs at both the end. A document or the promissory note issued against the borrower [that is a written promise to pay all pending payment in installments] is called a mortgage note which is owned by the lender. When a buyer is unable to pay installments as per the schedule and has exceeded his time limit of 90 days, his mortgage note becomes a non-performing note which allows the lender to seize the property and sell it to recover all money.
On the other hand, investors seek opportunities to buy non-performing mortgage notes from the lenders at a lower price than its current principal value and refinance the property for the buyer at revised terms. Investors can allow buyer to pay pending amount in smaller installments and over a period of 10-30 years [as suitable]. Eventually, an investor earns profits over these long term investments. BGK investments, a leading loan acquisition firm in US can help you invest in non-performing notes and offer free analysis too.
Mortgage loans are one of the most common forms of loans borrowed by individuals and firms; these include transaction of money where a property or an asset is kept as collateral by the borrower. It helps in getting loans on lower rates of interests and for a longer duration than personal and other loans. An important thing that should not be overlooked is the legal right to the property; even if the borrower has property on his name and he has signed the purchase agreement, he may not have legal or complete right to the property until the loan closing takes place. Closing is not just about paying back complete amount it’s about formally closing the deal under presence of a lawyer or a professional like a broker at the time of closing seller will execute the deed to the property, funds are transferred and disbursed and ownership or power of attorney of the property is handed over to the borrower.
Transactions during and at settlement of loan for mortgage is an easier said than done task; it involves tedious legal procedures and requirements that may get on the nerves of both the parties if not handled by a professional. This is where BGK Investments, a leading loan acquisition firm in California provides an easy solution to the quandary. Brokers, lawyers and financers working in BGK Investments are well-qualified and experienced professionals who deeply analyze each case before quoting to the clients. Be it loan against mortgage, trading of non-performing mortgage notes or settlement of mortgage loans, BGK Investments is the solution to all legal problems. In order to provide easy accessibility and convenient association with BGK, the company offers free note analysis for all new clients so they know the current market situation and get true value for their notes; this helps in understanding the market situation and decide if it’s the right time to sell the note or invest in one.
Investing in non performing mortgage notes or deeds of trust have turned out to be fruitful for many group and individual investors. Mortgage notes are promissory documents that state that the borrower officially mortgages his property against a loan and promises to pay scheduled monthly payments as per the note. Many banks and financers allow individuals to borrow money against a property they wish to buy or already own. This transaction is also known as ‘Seller Carry Back’. And a mortgage note becomes non-performing wherein the borrower is not paying scheduled monthly installments for more than 90 days and mortgage owner wishes to sell it off at cheaper rate.
This is where various loan acquisition companies grab the opportunity of buying mortgage notes at cheaper rates and earn millions out of them. While many companies have already earned hefty amount of money from non-performing notes, others strive to earn as well as help people to earn from these investment options. BKG Investments is a leading loan acquisition fund in California that has an efficient team of investors and financers who valuate mortgage notes as per the market research and sells them to investors at cheaper rates. The company is led by Mr. Ben Keisari who has more than 15 years of living experience of buying and selling mortgage notes and has worked with top real estate companies of California. He proudly owns BGK investments and assists many top financial institutions like Chase, Old Republic Equity Credit Services, Inc., Bayview Financial, United Mortgage Loan & Investment, Wells Fargo, Bank of America and PNC f.k.a. National City Mortgage. Precisely, BGK offers services in three major segments including secondary market investments, real estate and mortgage notes investments.