The Silent Note Killer Most Note Holders Never See Coming
The Silent Note Killer
Most Note Holders
Never See Coming
You trust your borrower. They have been making payments every month without fail. Everything seems fine.
Here is what most note holders never think about.
The payments coming in and the value of your note are two completely different things.
Your note can be losing value every single month while the payments keep arriving right on schedule.
And you would never know.
The Relationship That Created Your Note
Most seller financed mortgage notes are created between people who know each other.
A tenant buying from their landlord. A family friend. A neighbor. Someone who needed a chance and you gave it to them.
You knew your borrower. You trusted them. You did not need a piece of paper to tell you they were good for it.
Here is the problem.
The market does not know your borrower. The market does not care that they are a good person. The market does not care that they have never missed a payment.
The market wants documentation. A credit score. Verified income. Debt to income ratio.
And most note holders never pulled any of that at closing because nobody told them to.
What Is Happening Right Now Without You Knowing
Your borrower is living their life. And life happens.
They took out a car loan. They ran up credit card debt. They changed jobs. They went through a divorce. Their credit score dropped significantly since the day they signed your note.
You have no idea any of this is happening.
There is no phone call. No letter. No notification of any kind. Your payment arrives every month and everything looks fine from where you are sitting.
But the market is watching.
And every negative change in your borrower's financial picture is quietly eroding what your note is worth.
The Part That Surprises Most Note Holders
As the lender on your seller financed note you have the right to pull your borrower's credit at any time — just like any other lender would.
Most note holders have never done this. They assumed no news is good news.
But here is what pulling credit actually tells you.
It tells you if your borrower has taken on significant new debt since closing. It tells you if their credit score has dropped. It tells you if they are showing signs of financial stress that have not yet affected your payments — but could.
Note buyers will pull your borrower's credit the moment you try to sell your note. They will see everything. And they will price accordingly.
You should know what they are going to find before they find it.
What A Credit Drop Means For Your Note
A borrower with strong credit at closing is one thing. A borrower whose credit has deteriorated significantly since closing is something else entirely.
That deterioration does not show up in your monthly payment. It shows up in your note's value when you need to sell.
Note buyers price risk. A borrower showing financial stress is a higher risk note. Higher risk means a steeper discount. That discount comes directly out of your pocket.
The note you thought was worth one number is suddenly worth significantly less — not because anything changed about the property or the payment history — but because your borrower's financial picture changed and you never knew.
What You Can Do Right Now
Pull your borrower's credit. You have the right to do it and you should do it periodically.
Know what is in that file before a note buyer finds it. If the news is good — document it. Improved credit since closing is a value add. If the news is not good — now you know what you are working with before you need to sell.
Knowledge is leverage. Note holders who know exactly what they are holding make better decisions than note holders who find out at the worst possible moment.
Want To Know Where Your Note Stands Right Now?
Call 352-99-LEARN (352-995-3276) and Dawn, our Senior Seller Finance Note Analyst, will personally reach out to discuss your note's value and what your borrower's current financial picture means for what you are holding.
Or CLICK BELOW to fill out our online worksheet at:
SUBMIT ONLINE MORTGAGE WORKSHEET
No cost. No obligation. No pressure. Just an honest conversation about what you are holding and what it is worth.
About Moxxie Asset Group
Moxxie Asset Group works exclusively with seller financed mortgage note holders across the United States. We help note holders understand exactly what they have, know all of their options, and make informed decisions, whether they ever plan to sell or not.
Want to know what your note is worth right now?
Call 352-99-LEARN (352-995-3276) and our Senior Seller Financing Advisor Dawn will personally reach out to discuss your note's value and options. There is no cost, no obligation, and no pressure, just an honest conversation about what you are holding.
