PML wants to sell performing note

[Alan Bostick]

If a PML wants to sell a single performing  note should they just take it to a local bank and offer it for sale? Are there websites they should use for this kind of sale? How long after the note is tendered should the PML Wait to sell? If it is early on in the note would they be able to expect to be able to sell for premium (more than the principal balance) for a faster return on their investment? 

[Don Konipol]

@Alan Bostick

Privately originated Notes tend to sell for a discount to unpaid principal, not a premium. A lot depends on the loan amount compared to appraised value, interest rate, terms, borrower credit, specific property, and historical borrower performance and seasoning.

Banks don’t buy private mortgage notes. But there are plenty of private buyers, who can be found doing a Google search, listing it on a platform for note sales, or through a medium like BP.

I assume you're talking about a note secured by a SFR rather than a commercial note. Most private SFR originated notes are originated because the borrower or the property didn't qualify for conventional financing. Hence the note is riskier, and thus worth less than a note where the borrower and property meet Fannie Mae or FHA guidelines.