We Get Note Sales.
We can assist in the purchase or sale of a single or a pool of loans.
Currently there is a thriving secondary market for note sales, offering benefits to both the seller and the buyer. These transactions offer a high potential rate of return if the parties enter the transaction with eyes open - watching for a good investment, and avoiding any potential pitfalls.
At Rosenberg Martin Greenberg, we have extensive experience in representing both sellers and purchasers of individual loans, groups of loans or large pools of loans to various third parties such as other banks, private funds or guarantors. In addition to representing note purchasers, we can quickly and cost-effectively put together a team of attorneys to perform due diligence regarding a pool of loans in order to assist the purchaser with its decision to purchase the pool, as well as its pricing.
The value added by Rosenberg Martin Greenberg is that we have the expertise to draft sophisticated and effective purchase agreements from either the seller or purchaser’s perspective, and especially important for purchasers, highlight documentation and collateral deficiencies which prove useful in negotiating a purchase price.
Complexities of note sales
Offering notes for sale gives lenders a chance to turn funds around and create more loans before earlier loans are paid off. Selling debt offers lenders flexibility that they would not have if locked into long-term investments; it brings immediate liquidity. A note holder may also want to sell loans on the secondary market due to changes in financial circumstances or deteriorating collateral.
Selling loans also relieves the lender from acting as a loan servicer. Some lenders sell the loan but retain the right to perform the servicing, thereby minimizing the effect on the consumer, who can keep making payments to the lender as before the note sale. Other lenders relinquish the servicing rights in order to avoid continuing that step, which means the customers must deal directly with the note purchaser.
In all note sales, the seller must comply with various federal and state statutes, the failure to do which may entitle the purchaser to rescind the purchase if, subsequent to closing, the purchaser regrets its decision. RMG attorneys help clients stay in compliance with all statutory requirements pertaining to such transactions.
Buying real estate notes in a mortgage pool
After the housing market crash in the early 2000’s, there have been an unprecedented number of mortgage notes for sale. For some investors, this secondary mortgage market offers an opportunity to buy notes at a discounted price and potentially higher yields.
A buyer can purchase individual mortgage loans or they can buy a pool of loans. The bigger the mortgage pool, the greater the due diligence required. Some important considerations include the quality of the loan documentation, the quality of the underlying collateral, and the nature of the guarantees. Real estate legal counsel can help note purchasers make these critical determinations.
Experienced real estate attorneys are an asset to loan sales
An attorney should be involved at each phase of a loan sale, performing the necessary due diligence to determine the strength of the underlying loan documentation, prepare documents, memorialize agreements, and spot all complex compliance issues. Attorneys at RMG regularly assist sellers and buyers of notes throughout the United States, including Maryland, Virginia, Delaware, West Virginia, Washington DC and Pennsylvania.
Our team is a true industry leader in all matters relating to note sales. We are eager to apply our expertise to your corporate endeavors and help your interests thrive.
Note Sales Team
The Latest from the Knowledge Center...
Now Accepting Applications: Rosenberg Martin Greenberg Opens 2022 Application Process for Second Cohort in its Building Black-Owned Business in Baltimore Program
On July 1st, Rosenberg Martin Greenberg (RMG) began accepting submissions for its second cohort in the Building Black-Owned Business in Baltimore Program (the “BBOBB Program”). Black business owners in the Baltimore Metro Area are encouraged to apply in order to receive complimentary legal services for one year. From the applicant pool, five businesses will be…
Twenty Rosenberg Martin Greenberg Lawyers Honored by Maryland Super Lawyers® in 2022
Rosenberg Martin Greenberg is proud to announce that twenty of its attorneys have been selected for inclusion in the 2022 edition of Maryland Super Lawyers®. The firm’s attorneys who have been selected include Benjamin Rosenberg, Gerard Martin, Barry Greenberg, Gerard Gaeng, Andrew Baida, Louis Ebert, William Hallam, David Wyand, Caroline Hecker, Charles Curlett, Jr., Steven…
Rosenberg Martin Greenberg LLP Ranked in 22 Practice Areas in 2022 “Best Law Firms” List
Rosenberg Martin Greenberg LLP is pleased to announce that the firm has been ranked in the 2022U.S. News – Best Lawyers® “Best Law Firms” list nationally in 4 practice areas and regionally in 18 practice areas. Firms included in the 2022 “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings from…
Caroline L. Hecker Named First Woman and Non-Founder to Serve As Managing Partner of Rosenberg Martin Greenberg, LLP
Rosenberg Martin Greenberg, LLP is pleased to announce that Caroline L. Hecker has been elected as the firm’s next Managing Partner. Caroline will assume the role effective January 3, 2022, becoming the third Managing Partner in the firm’s 34-year history and the first woman and non-founding member to hold the position. “Caroline is an extremely…
Rosenberg Martin Greenberg Welcomes Four New Attorneys
Rosenberg Martin Greenberg is pleased to announce the addition of Bryan K. Saxton, Brooke A. Hutchins, Drew E. Tildon, and Thérian (Jung Yong) Lee. Barry Greenberg, RMG’s Managing Partner and head of the Firm’s real estate practice group, said: “Our new attorneys add additional depth to multiple practice groups within the firm and are eager to work…
Seventeen Rosenberg Martin Greenberg, LLP Attorneys Selected for Inclusion in Baltimore Best Lawyers in America in 2022
Rosenberg Martin Greenberg, LLP is proud to announce that 17 of its attorneys have been selected by their peers for inclusion in the Best Lawyers® in America 2022 List, to be featured in U.S. News & World Report. Best Lawyers® is a respected peer-review publication in the legal profession which has been published for over…
Rosenberg Martin Greenberg, LLP Welcomes Seven New Attorneys During Pandemic of 2020-21
Rosenberg Martin Greenberg is pleased to announce the addition of our “COVID class” of seven new attorneys to the firm during the past 12 months. We would like to welcome Christina “Chrissy” Bolmarcich, Brett F. Baldino, Jeffrey S. Greenberg, Gabrielle D. Shirley, Jessica L. Duvall, Robert M. Berman and M. Ari Storch. Barry Greenberg, RMG’s Managing Partner and head of the Firm’s real…
Nineteen Rosenberg Martin Greenberg Lawyers Honored by Maryland Super Lawyers® in 2021
Rosenberg Martin Greenberg is proud to announce that nineteen of its attorneys have been selected for inclusion in the 2021 edition of Maryland Super Lawyers®. The firm’s attorneys who have been selected include Benjamin Rosenberg, Gerard Martin, Barry Greenberg, Gerard Gaeng, Andrew Baida, Louis Ebert, William Hallam, David Wyand, Caroline Hecker, Charles Curlett, Jr., and…
Rosenberg Martin Greenberg LLP Ranked in 25 Practice Areas in 2021 “Best Law Firms” List
Rosenberg Martin Greenberg LLP is pleased to announce that the firm has been ranked in the 2021 U.S. News – Best Lawyers® “Best Law Firms” list nationally in 6 practice areas and regionally in 19 practice areas. Firms included in the 2021 “Best Law Firms” list are recognized for professional excellence with persistently impressive ratings…
Consumer Lending Laws May Be A Trap For Even The Wary
It is no surprise to anyone involved in consumer lending that laws designed to protect consumers from inception of the loan relationship through collection of the loan following default vary greatly from state to state and even by loan type within a state. Not staying on top of these variations can get even an experienced…