As your broker I’m most interested in maintaining your business, and reinvesting your money when it comes out of a mortgage at the end of the term of the mortgage. This will only happen if you are satisfied with the outcome of the processes.
I will send you a variety of documents that help describe and illustrate a potential investment opportunity in a mortgage. The documents I will send you will include:
I will leave an investment opportunity in your hands for a relatively short period of time before sending it to the next potential investor, as I am expected to give the borrower an answer within 24 hours of a request for a loan
- Mortgage Investment Disclosure Statement
- Mortgage Application from the proposed borrower
- The Credit Report on the proposed borrower
- Property appraisal, assessment or Agreement of Purchase and Sale with MLS listing.
Since the value of the property is the critical issue, the basis on which the value is given is important. Generally I order and provide an appraisal prior to funding, although it may not be available immediately. On a new purchase, if it is an MLS sale, then the installment loans direct lenders in Florida Agreement of Purchase and Sale is usually sufficient to attest to fair market value. If it is a private sale, the borrower is required to pay for an appraisal from an approved appraisals firm hired by us.
Once I send you the various information sources listed above I will generally request that you review and decided to fund or not to fund a specific mortgage.
So if you are interested in a mortgage I have presented, it is really important to let me know right away, so that I can send a commitment to the borrower, and get the process of registering the mortgage underway at the lawyers’ offices. I will let you when the funds are expected at the lawyer’s office, and the method by which they can best be transmitted or deposited to the law firm. It is at this stage that many investors first have contact with the law firm, or talk with the lawyer handling the conveyance (registration of the mortgage) to answer any questions they have. If you already have an experienced law firm or lawyer handling other mortgages for you, I will try to work with your professional. Since we have a lot of work to do with the law firm in setting up and managing the mortgage, we generally prefer to work with a lawyer we know and trust to do a good job, and who will be responsive to our lenders.
Funds are deposited to the trust account of the law firm, the mortgage papers signed, and the funds issued to the borrower. You then receive post-dated cheques made out to you and put the money in your account on a monthly basis. After the end of the term of the mortgage, most commonly 12 month, you will receive your principle investment back, or you will choose to renew the mortgage.
The lawyers who draw up the mortgages and register them do all of the following in the course of doing a mortgage:
I will leave an investment opportunity in your hands for a relatively short period of time before sending it to the next potential investor, as I am expected to give the borrower an answer within 24 hours of a request for a loan
- Title search prior to make sure that they have a comprehensive list of everything on title that needs to be removed before advancing the new mortgage.
- Contacts the insurance provider of the mortgage borrower to make sure that valid general insurance is in place, and that a rider is attached to ensure payment of the mortgage in the event of a major claim.