How A Seasoned Note Can Instantly Become An Unseasoned Note

I was working with a private note seller about his note recently. The original issue date was in 2007 so it should command a good price all other things being considered. As I was collecting his documents, he mentioned that the borrower had been paying cash. That’s a big red flag. It Turned out the buyer had been paying cash since day one except for the most recent three months. I had to break the bad news to him that his mortgage note essentially had only three months of seasoning, which will lower the price of the note. So if you’re holding a seller financed mortgage note, please be sure and make your borrower either pay by check or a money order and keep copies of every payment. You might even want to deposit the money separate from any other deposit just to be sure you have a great payment history. You’ll put more money in your pocket when you sell a note to a note buyer.