In this episode of The Real Estate Lowdown podcast, Host Bill introduces the REAL TidBits Series which is a group of short informative talks on a specific slice of the real estate market. The REAL TidBit series will offer the ability for the audience to educate themselves on the vast real estate business.
Who owns your mortgage? It’s not a common question, but it has an interesting answer. In this TidBit, Bill Bymel explains what a mortgage is, how mortgage notes or deeds of trust originate, and then why they are sold to investors in the secondary mortgage market.
The secondary mortgage market is an old boys network of banks and large investment institutions where mortgages are sold. Why it’s important is that the secondary mortgage market is where banks and loan originators go to get more cash to make new loans.
NPL stands for Non-Performing Loan. These are mortgage loans in default. Bill discusses NPLs and how their existence can not only be a bellwether for the economy but also the purchase of NPLs at a discount can provide great opportunity in acquiring real estate.
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