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Take Your Mortgage Records to the Next Level

Posted on 12/21/2020 by Chandler Oley

Real estate professionals – especially those using GeoData Plus – understand how important it is to have as much information as possible on a property when it comes to decisions related to purchasing, selling, and listing. One of the many important elements that we like having at our disposal are the mortgage details on a property. With one of our newest updates, we’ve pushed the boundaries set by traditional mortgage record data sets.

How Does the Mortgage Information Come into Play for Buying and Selling?

One of the most commonly agreed upon truths in the real estate industry is that it is important to know the transaction history on a property. If you know what the property sold for previously, you’re able to take that information into consideration when coming up with a price to buy or sell. You should also take into account that there’s the emotional element involved with the seller who knows what he or she paid for the property, and of course, wants to sell it for more than it was purchased for.

This is especially true when a property was purchased through mortgage financing. For decades, there have been flexible lending programs where a buyer can finance 80%, 90%, 100%, or in some cases over 100% of the original purchase price. Couple those financing programs with a downward real estate market, and you could have properties that are valued for less than the total amount financed. These properties are often referred to as “underwater” or “upside-down”.

Many data providers will only show you when the properties were sold last, and won’t even include the financing information. Some data companies, such as GeoData Plus, include the mortgage records along with the sale of the property so that you can get a better idea of how much the property was financed for, and how the value of the home relates to the amount financed. When mortgage information is available, it is typically limited to the date the mortgage was approved, the original amount, the lender, and the borrower. In some instances, additional information is available such as the term and rate, but this varies based on the availability of that data.

GeoData Plus has taken it a step further by including not only the original amount of the mortgage but the estimated balance of the mortgage on the property.

Why is Knowing the Estimated Mortgage Balance So Important?

It’s useful to know what the original amount of the mortgage is, but unless the mortgage was just taken out, the borrower has made a payment on that mortgage. Over time, as the payments chip away at the principle, those payments start to put a dent in the amount borrowed. Typically, the only way to find out the balance on the mortgage is to have the borrower hand you their mortgage statement. If you’re trying to purchase the property or list the property for sale, chances are you haven’t built up enough trust with the borrower to have them hand over their statement.

That’s why GeoData Plus estimates the balance on any active mortgage, showing that amount on the property report within the mortgage section. If you already have access to mortgages in your GeoData Plus account, then you probably already have observed that the estimated balance has been added:

Having a better idea of what the seller owes on their property can help you come up with a purchase offer or listing price that strikes the balance between a reasonable market value, and the emotional need for the seller to feel they’re “walking away” with more than they started with.

Furthermore, the estimated balance can help you calculate a more accurate loan-to-value ratio so that you walk into a transaction with eyes wide open, knowing how likely a property is to be underwater.

How Does GeoData Plus Calculate the Estimated Mortgage Balance?

It’s not rocket science, but calculating an estimated mortgage balance yourself does take a lot of time and legwork. We decided to crunch the numbers for you.

GeoData Plus uses a number of statistical assumptions such as:

  • The mortgage is a thirty-year fixed rate.
  • The interest rate is based on the average thirty-year fixed rate at the time the mortgage closed.
  • The borrower is making their payments.

Obviously, any deviation from these assumptions will result in the estimation being off, but our testing shows the estimated mortgage balance to be both accurate and reliable in most situations.

Ready to Benefit from Better Mortgage and Other Property Data?

If you are ready for a property data tool that goes beyond the standard industry offering of public record data that everyone seems to have, it’s time to try GeoData Plus. In addition to adding the estimated balance to mortgage records, GeoData Plus offers detailed reports on over 150,000,000 properties nationwide, which include ownership, building details, taxes, zoning, flood zones, sales history, mortgage records, listing activity, combined with a nationwide database of pre-foreclosures, auctions, and bank-owned properties, all in one easy-to-use platform.

Still not sure? GeoData Plus offers a thirty-day money-back guarantee so you can see for yourself how we can help grow your real estate business. Get started today!

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