How to Sell Mortgage Notes for Money
A mortgage note is a type of promissory note used specifically in mortgage loans. A mortgage note is a document held by your lender that states that you promise to repay your lender. Your mortgage note has all the specifics of your loan, including the following: the rate of interest, terms of your loan, payment due dates and penalties and fees for not meeting your payment due dates or other terms of your loan.
Why do people sell their mortgage notes? There are a number of answers to this question. Quick access to cash, to pay medical bills, retirement, paying debt, college tuition/student loans, and/or buying a new house. Selling a mortgage note can be much smoother than a regular mortgage deal. Here is how to sell mortgage notes for money.
Deciding to Sell
For some, mortgage notes can easily be transformed into cash in a time of need. In other cases, you may have to use seller-backed financing to get a property fast and intended to sell the note from the start. Many folks start the process by searching for information on whether their note is saleable. If you’re interested in selling but not sure whether your note is saleable, inquire. It can’t hurt to find out either yes or no.
Let Buyer Handle the Details
Be sure that there are no upfront fees. There should be no points, closing costs, or other fees at during this process. At times, it may be expected for the note buyer to ask that you pay for the appraisal or title policy only if the property appraises for less than the sales price or there are problems with the title that prevent the purchase. However, these payments should be clear up front and should cover just the buyer’s actual costs. Be certain that the note investor checks the credit of your property buyer upfront.
Most companies buying notes pay all closing costs. It is helpful if the company close the purchase of your note with a local title company or real estate attorney and we pay all costs. Most companies will buy all or part of your Note and hopefully, pay you top dollar.
In today’s economy, there are many reasons a note holder may find the need to cash out a portion of or even the entire remaining balance of a note. A local note buyer will come up with the value of your note, offer you the highest possible price and several options.