NOTES, in ALASKA - where are they?? Who owns them??

Question

Hi BP Experts,

I've been reading a lot about notes and note schools and have read a lot of the free stuff available online and my primary question is - where are the notes for Alaska?? I went to FCI Exchange, loanMLS.com and loanmarket.net and all of them had zero notes in Alaska. We do have a state backed (funded?) mortgage company, Alaska Housing Finance Corp (AHFC) here, and the usual banks and credit unions, but there must be some sort of market for notes in Alaska outside of the state. Maybe no one wants them because we are "that mysterious frozen land up north" in which case, send me your Alaska notes and I'll have a look at them! ha ha

Seriously, what happens to Alaska notes in a FNMA pool of mortgages that get sold? I'm sure Mr. Smith in FL or Mr. Brown in CA or Ms. White in GA isn't interested in having to foreclose on a property in Alaska. (I hope there isn't a Smith or Brown or White on BP!! it's only intended as an example) But I live here, and I know the greater Anchorage and Mat/Su Valley area, where I'd venture to say 80% of all the Alaska loans, notes, etc. are securitized.

There are at least two corporations who sell notes, and presumably buy them here too. But do they have first pick and do they get them all? Who would I talk to about finding any notes at all? I know, someone is going to ask me what I want to buy, 1st, 2nds, performing or non-performing. Heavens, I'd just like to find anything that the security is here...in my back yard.

Dolly Caswell · Answer

@Bob E. I'm still waiting, holding my breath for you to answer my previous question!

What in the world do you mean by "short duration front end payments where the seller still has a substantial interest in the latter payments so they will be motivated to look out for your interest, or buy out your interest, in the event  of default?"

I can't imagine...help me out here, please?

James Cash · Answer

Just rummaging through this...I get the notice of defaults every week @Dolly Caswell, I can forward them on to you if you'd like.

Dolly Caswell · Answer

Also @Bob E, have you any idea what a lawyer, and a contractor or PM costs in Alaska? I suppose I am imagining they cost as much elsewhere. And quite frankly, if I can't SEE the work being done, how do I know it's being done right and I'm getting what I'm paying for? I don't know what a servicer costs, but I can roughly calculate that a servicer, lawyer and a PM who will also rehab the property will cost a fortune...at least they do here.

Dolly Caswell · Answer

Hmmm, @Bob E,.....short duration front end payments where the seller still has substantial interest in the latter payments so they will be motivated to look out for MY interest, or buy me out?? I have no idea what you are talking about!  Could you explain and be specific?? Thanks, by the way for your idea.

Bob E. · Answer

@Dolly Caswell  Why would you to go to the property just because it defaults?  We are based in AZ and have foreclosed on several properties in the midwest without ever going there or seeing them in person.     Ever.  You hire a servicer, they will send any default notices, hire the lawyer, etc. etc.

Then if/when you get the property back you hire a local PM todo the rehab and get it rent or sale ready.

If you are not comfortable with that then buy short duration front end payments where the seller still has a substantial interest in the latter payments so they will be motivated to look out for your interest, or buy out your interest, in the event of default.

Dolly Caswell · Answer

Yes,  I know I can buy notes elsewhere, but IF I have to foreclose, it seems to me that if the property is no more than a 3 hour car trip vs. a $600 plane ticket plus hotel, plus, plus that I have the home front advantage here. Interesting that you say there are better deals in other states, @Darren Eady, could you tell me why? And thanks so much for your input.

Darren Eady · Answer

Why are you looking only in Alaska?  If you are searching for performing notes, there are many people lending and creating notes for sale in many states throughout the country.  I guess many people like to purchase around their home, but their are better deals in other states.

Dolly Caswell · Answer

Good ideas, @Connor Dunham and @Bob E. I appreciate your input. I'll make some calls Monday.

@W.J. Mencarow I have sent you a PM and will be interested In what you have to say.

Connor Dunham · Answer

Try talking to some local mortgage loan originators such as first rate or titan. I'm sure they originate more than just conventional notes. The recorders office like was mentioned before is the other place to look for clues.

William "W.J" Mencarow · Answer

I tried to post three possibilities for you, but the BP website won't allow phone numbers or email addresses.  PM me with your email address and I'll send them.