For a list of terms and definitions, read our Glossary.
What is a note? And how is it different than a mortgage?
A note is the document used to promise the repayment the loan and a mortgage is a lien against the property to secure the loan.
What does PPR do?
We purchase discounted notes and mortgages from industry wholesalers at sizable discounts. By sharing the purchase discount with the homeowner, we are able to create a payment workout and the note becomes a performing asset.
Does PPR buy first or second mortgages?
PPR prefers to buy second mortgages because of the lower price points, more upside potential, and so we can diversify our risk amongst many assets.
How do I get the money to buy a note?
Many note buyers get money through equity lines of credit through properties, cash savings, retirement accounts/self directed IRA’s, HSA’s, CESA.
What do I do if the note stops performing?
Performers purchased through PPR are covered by our warranty, and otherwise the note buyer would proceed to foreclose.
Where can I buy institutional notes?
From PPR or other banks and servicing companies.
Why are notes discounted?
For a variety of reasons, such as performance and status of borrower and value, condition, and status of the property.
Does PPR foreclose against the Homeowner?
Unfortunately there are circumstances where we initiate foreclosure on properties in our portfolio. However, we make every attempt to help the homeowner keep their home. Foreclosure is generally a result of the homeowner avoiding discussions with us or where they have already vacated the property. If necessary, we make apartment deposits, provide travel money, and pay administrative fees, etc. on their behalf to assist in their transition.
What do you do with non-performing assets after purchase?
The first rule is to work with the homeowner to design a payment plan and loan terms that work for their financial situation. The key is to engage the homeowner, build their trust and keep their best interest at heart. We have found that many times there are short term circumstances such as a health issue, job loss or divorce that are preventing them from making full payments on their mortgage loan. By purchasing their notes from the bank at such deep discounts, we are able to create a “win-win” scenario until they get back on their feet. Other strategies are payment plan reinstatements, reinstatement with discounts, refinancing, seller assistance, deed-in-lieu of foreclosure and foreclosure as a last resort.
How does the warranty work for Performing Notes?
At PPR we warranty your principal, if your loan defaults then you need to notify us and we will start to work on your behalf. If the loan stops performing for 6 months we will give you a note credit. Please see post sales support.
When does PPR expect funding after a purchase request?
Three to five days.
Why do I need to fill out a Power of Attorney form for Performing Note purchases?
If your note defaults we need the Power of Attorney in place to work on your behalf to get the borrower back on track.
What do you rep and warrant (back and guarantee) for non-performing notes?
That it is a valid lien and in second position.
How can I learn more about notes?
PPR offers workshops on performing and non performing notes and a coaching course these are offered at www.PPRNoteAcademy.com. In addition, ask any question on the contact us page.
Can I sell a note?
Yes, you can borrow against them as well (that’s a collateral assignment and note and mortgage).
How long after I purchase the note will I receive the assignment/collateral from PPR?
You will get the collateral in about 15 days. If you purchased a performing note the original assignment is sent to the recorder’s office for recording on your behalf. If you buy a non performing note YOU are getting a signed notarized assignment then you must send out the assignment for recording to the county recorder’s office for the property referenced in your note. (There are times when the assignment is not included and that is usually when we are waiting for a previous assignment in the assignment chain to come to us, so that the recording is completed in order).
What part of the collateral file goes to the IRA custodian if purchased through a retirement, health savings, or college education fund?
Copies of: Note, Mortgage, workout letter (CAMA only), NSA, original recorded assignment after it comes back, purchase asset directive (CAMA only). If you have any questions about what these documents are please visit our glossary.
How long does it take to set up a note with a servicer?
The application goes to the servicer immediately at funding and takes approximately four days.
Why do I have to sign a NDA (non-disclosure agreement)?
Because you’re not allowed to contact the borrower before the purchase of the mortgage and PPR will be releasing confidential credit information before the purchase of the note and said information must be kept confidential.