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LoanMarket.NET: An Online Marketplace For Buying And Selling Loans
Published on:Thursday, March 26, 2009
Written by:Brad Zimmerman
A California web based company; LoanMarket.NET is looking to capitalize on the mortgage market in a rather interesting way, utilizing the web to transact mortgages and provide market information on loans and notes like never before.
For those interested in selling which can be anything or anyone from banks, private equity funds to individuals, LoanMarket.NET makes it easy to post real estate secured promissory notes and all the pertinent information via a step-by-step guide. This includes appraisals, loan documentation, deeds of trust and even proof of homeowners insurance, among other things. LoanMarket.NET secures all of the paperwork necessary for each property, to increase transparency and ease the buying and selling process.
LoanMarket.NET works with The First American Corporation to provide a property profile and an analysis of current market value, as well as a picture.
“This high level of specific information and documentation allows bidders to adequately underwrite a loan’s risk and bid toward the yield they would require in order to invest” –LoanMarket.NET
Buyers must be approved by LoanMarket.NET and provide proof of the ability to close. As always with important financial decisions, LoanMarket.NET encourages buyers to consult appropriate counsel before finalizing anything.
In this market pools of loans are being purchased for nearly 20 percent of their original face value and being sold individually for 10-30 percent more. There is money to be had even in an economy such as this. Deals can be confirmed in as little as seven days.
LoanMarket.NET is hoping that the low loan-to-value opportunities in the current market will entice investors to continue buying and selling. LoanMarket.NET also utilizes escrow to ensure the sale of any notes is without issues.
The goal of the Web site is to create a much more transparent market where those involved can, buy, sell originate, or even retain services relating to debt instruments secured by real estate.
With an easy to use interface and loads of helpful information, LoanMarket.NET has a lot to offer investors. The biggest problem with the website is simply a lack of inventory. Currently the company is focused exclusively in California and only has a limited number of listings available for investors to purchase. As the company works to expand their inventory, though, investors interested in mortgage investments should definitely give the site a look.
Investors looking to sell notes they already own can post these on the site as well, however, it does cost money. According to the website, sellers are required to pay a listing fee of $199 for 90 days of exposure. In addition, if a successful buyer is found the seller has to pay a commission to LoanMarket.NET of 0.95 percent of the loan amount, and a processing fee of $295.
You can visit their Web site at: http://loanmarket.net.
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