Thursday, February 18th, 2010 at
6:05 am
Self-directed IRAs as Stockholders of Private Mortgages
Everyday we hear about the mortgage meltdown and how mortgage companies are feeling the pinch or in some cases going out of business. This problem has broaden another industry altogether, private mortgage firms and they are a growing segment of the lending industry and many of these firms are capitalized by self-directed IRAs. Why is that? Because private mortgage holders are built to hold their own notes rather relying on selling them off to the securities market these are known as non-conforming loans.
Also they are not bound by many of the rules and regulations that traditional lending entities must abide. Private mortgage companies may be willing to provide a loan to an individual or business that might otherwise have been turned down by a traditional lender. Does that mean that they are easier to get loans from? Maybe, the underwriting requirements tend to be more common sense than traditional lenders and they are not bound by regulatory rules that seem to make no sense. A private mortgage is a loan financed by an entity independent of banks or common financial lending institutions and many of these independent banks have their stock owned by self-directed IRAs. These are private loans offered by individuals or businesses with a defined purpose such as real estate. These lenders are often more concerned with the collateral assets and loan to value offered to secure the loan so the current and potential equity of the real estate is generally the important factor. In contrast to banks which would prefer to avoid the unprofitable process of a foreclosure if a default should occur a private mortgage company may be more willing to restructure risk and enter into foreclosure. Part of the reason for this is that a private mortgage company unlike traditional banks might have the needed resources in place to sell of the property or perhaps may even manage the property for equity gain or for rental.
Daniel Cordoba is the principal and founder of Asset Exchange Strategies, LLC a self-directed IRA advisory firm in Austin, TX. For more information please go to www.Assetexchangestrategies.com
By: Assetexchangestrategies
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Tuesday, November 10th, 2009 at
12:09 pm
Every business benefits from marketing and the mortgage industry has long known this fact. Mortgage companies actively participate in marketing campaigns through the use of seminars, press releases, advertisements in the media, cold calling, various lead generation tactics and by word of mouth (WOM).
The internet is widely used in mortgage marketing, most notably through the use of a mortgage website. Mortgage companies can take many different approaches to marketing, ranging from advertising early mortgage approvals, short-term loan processing, low interest rates, or bad credit mortgages.
Mortgage marketing is probably most commonly done via telemarketing. Telemarketers are employed which call people from a random list. If the person contacted is interested in a mortgage, the lead is send on to the mortgage company itself. Using what is called a hot transfer method, a call can be transferred directly to a representative of the mortgage company.
Mortgage marketing services can take many forms. Many mortgage firms hold seminars for a select group of people who are most usually real estate agents and prospective home buyers. The mortgage companies will put on a series of presentations wherein they provide an incentive for people who purchase their mortgages on the spot or within a limited number of days. This method is quite effective but of course it can only be used periodically.
Professional mortgage brokers play an important role in the world of mortgage marketing. Since banks cannot address or accept problem loans themselves in a direct manner, they allow the brokers to do the job for them. Banks maintain friendly relationships with mortgage brokers as they are their best source for marketing mortgages. The brokers take on the task of initiating and processing the loan before they turn it over to the bank. Most brokers are capable and trained to deal with all types of loans, including government mortgages. It is estimated that fifty percent of all mortgages are initiated through mortgage brokers.
Home buyers are turning to the internet more and more these days and using mortgage websites. There are many benefits to borrowers who choose use a mortgage website. The borrower gets a very quick response using the website compared to what they would get by contacting a bank directly. These websites give the customer multiple interest rate quotes from which they can review and compare rates, fees and the pros and cons of each offer.
By: Caitlina Fuller
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