Frequently Asked Questions

Who is McKinley Mortgage Company?

We are the largest note buyer in the state of Alaska, members of the Better Business Bureau. We pride ourselves on being the quickest and easiest to work with. We have been in business since 1989.

What do you mean you buy mortgages?

We purchase deeds of trust from individuals who are receiving payments on a note they financed from a property they sold. Are you receiving payments on a mortgage now?

What do you pay for mortgages?

It depends on the type of note you have. No two notes are alike. Sometimes we pay, 85 percent of the current balance, other times 60%. Pricing depends on the interest rate, term of the note, down payment and creditworthiness of the payer. For example, we pay more for notes with higher interest rates and shorter terms.

How much of a discount will I have to take?

As little as possible. Each note is different.

How long does it take to get a quote?

We have a goal to call everybody back with a fair market value within 24 hours or sooner. Personally, I prefer to get back with you within the same day as your request.

How long does it take before I get my money?

From the moment we receive your authorization it will take approximately 20 business working days. Sometimes it is less, other times slightly more. One of the components that take the longest is the appraisal. It is a drive by appraisal and by a professional appraiser and can take up to three weeks to obtain. We pay for the appraisal and the appraiser does not notify the property owner.

Why does it take so long?

The title search and appraisal are what takes the longest. We don't have control over the length of time for the appraiser to complete the appraisal.

Are there any points or fees I'll have to pay?

We pay for the appraisal, title insurance and closing costs. The Note Seller pays a $100 processing fee at the closing.

If the balance changes on the note due to another payment being made in the next few days, will you still pay me the same amount of money?

If you receive a payment between now and the time we close, you keep it and we will pay you the amount offered minus any difference in the principal. This is called principal reduction. That way you receive the interest for that month. Some competitors would pay you a whole monthly payment less, but we only deduct the amount the principal balance was reduced.

What documents do you need?

To give you a fair market value we do not need any documents. However if you choose to accept our offer we create a note application which is our commitment to buy the note at the specified value, we need a release letter which enables us to receive all the vital documents on your note. For example, the escrow company will fax us a copy of the note, deed of trust, escrow instructions, and payment history.

If you have a settlement or closing statement from the title company handy it would help us close sooner for you. Sometime title companies are not real fast in sending us that document. The reason why settlement or, closing statements are so important is that they verify the sales price of the property.

Also, if you have a copy of the fire insurance (if there is a house) that is the one document the title or escrow companies won't have and would help us tremendously.

What makes a good note?

A first lien position is more valuable than a second. A shorter term note is more valuable than a longer term note. The bigger the down payment the more valuable the note. The more the loan has been paid down the more valuable the note. A note secured by improvements to the land (house, outbuildings, well, septic) are more valuable than those notes secured by property with little improvements (raw land). If the payer lives in the house the note is worth more. If the payer has average to good, credit the note is worth more.

How does a cash out work?

Whether a Full or Partial Assignment, it is similar to the process when you sold your house owner-finance. First, it takes about one week to collect your file and approve it. Next, we open an escrow at the title company, and prepare closing figures based on title and bank records. Finally, you, the , Seller go to the title company and sign. You receive funds the next day form the title company. It takes from 2-4 weeks average from start to finish.

How does the sale of our note affect the buyer of the house?

Not at all. The house buyer signed a note and trust deed at closing, not you. Therefore, the only way ANY terms of the contract or escrow can be changed is if the buyer agrees to it, and signs modification papers. After the sale of the note, where you get the funds, the buyer still makes payments to the bank escrow you set up. The only change is where the monthly payment goes AFTER the bank receives it.

What is the difference between the full and partial purchase?

A Full Assignment is just that -- all right, title and interest to the payments and escrow are assigned for the maximum amount of cash now. A Partial Assignment is much different. With a “partial”, you sell the front portion of your escrow for a lump sum of cash now. The benefit here is you enjoy cash today, but you still own a lot of equity in the back escrow. Another benefit to you is that you have Alaska’s largest mortgage company as a partner -- if there ever is a default, you have the option to pay off our amount still owed. If you don’t wish to fund us out, we’ll handle the foreclosure and resell the property at Fair Market Value The new buyer, if not paying cash for the property, will be set up on payments. After we’re paid off, you get all the rest! This Partial is a popular program, with approximately 42% of our clients preferring its flexibility.

For any further questions please contact us, click here.