Monday, August 21, 2006

Private Mortgage Investing - The Risks are Low

Mortgage investors (known as mortgagees) have legal rights to collect on the mortgage debt if borrowers fall too far behind with payments. As with all loans, with private mortgage loans there are risks -- late payments or perhaps no payments. Luckily, such loans are backed by real property. This means that late payments or no payments will eventually be caught up - even if you have to deal with the foreclosure of the property. Most brokers that I have spoken with have either never had to go to foreclosure or gone only once. Even then, they lost no money.

To learn more about it, buy and read Private Mortgage Investing by Teri B. Clark.


At 7:07 PM, Blogger Shannon Dolphin said...

In Canada there is an investment vehicle conduit called MICs or Mortgage Investment Corporations. Investors receive shares for their investment which in turn is allocated to a pool of mortgages. MICs are run by Mortgage Managers who who take a small fee. MICs are growing exponentially since they provide a good solid return to investors as well as risk is mitigated against the pool of various mortgages. There are a number of rules associated with these investments to further legitimize the investment. Our company ( deals with these companies since we supply software to maintain MICs. Syndications and direct investments are also popular


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