A company operating from North Carolina is buying second mortgages across the country at hefty discounts.
The company, U.S. Funding Solutions Inc., announced Monday that it has hooked up with a private investor group and plans to use its new funding to acquire performing second deeds of trust or second mortgages.
Many of the company’s customers are desperate property sellers who carried a private second in the sale of a property and are in need of quick cash.
Ron Stone, president of the Mars Hill, N.C.-based firm, explained in a statement to Mortgage Daily that most of the private seconds acquired by the company are purchased for between 30 and 40 cents on the dollar. No closing costs are involved.
He said that they buy second liens in all 50 states.
Stone said that payment history on the loan is even more important than equity. Also a big factor is the borrower’s credit.
“Lastly, our minimum is $5,000 and closings are very fast,” Stone stated.
