Selling Mortgage Notes Learning Center



Why Sell My Mortgage Note?

Posted by on Jun 19, 2017 in How to Sell My Mortgage Note | Comments Off on Why Sell My Mortgage Note?

Accepting payments on the sale of real estate might have made sense at the time, but circumstances change. Many sellers discover they would now prefer cash today rather than the small amount that trickles in each month. Here are just a few reasons people have sold all or part of their seller financed mortgage notes for cash: Retirement Taxes Investment Opportunity Expensive Medical Care Vacation College Tuition Unexpected Financial Changes Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose...

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5 Reasons Owners Offer Seller Financing

Posted by on May 29, 2017 in Seller Financing Tips | Comments Off on 5 Reasons Owners Offer Seller Financing

Why would a seller allow a buyer to make payments over time for the purchase of property? Wouldn’t the seller rather get paid now and require the buyer to obtain a bank loan? Here are 5 reasons property owners offer seller financing: 1. Reduced Marketing Times What is the first thing a real estate agent does when property is not moving and has been on the market for 60 to 90 days? They reduce the price and add the tagline “price reduced” to all advertising and signs. Rather than reduce the price, it might be beneficial for the seller to...

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Safekeeping the Original Mortgage Note

Posted by on May 16, 2017 in Protecting Mortgage Note Values | Comments Off on Safekeeping the Original Mortgage Note

Can you easily locate the original mortgage note? This important legal document should be kept in a safe place, and here is why! The promissory note is a promise to pay or IOU from the property buyer. It spells out the amount due and terms of repayment. In legal jargon it is known as a negotiable instrument. Similar to a check, the original must be presented to collect or prove ownership. If the seller desires to sell and assign the payments to a note buyer, the investor will ask for the original note to be provided at closing. The promissory...

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Avoid Three Seller Financing Mistakes

Posted by on Apr 16, 2017 in Seller Financing Tips | Comments Off on Avoid Three Seller Financing Mistakes

Would you rather have $97,000 to sell your $100,000 note or only $80,000? The difference in usually comes down to the big three. Here’s the three biggest mistakes note sellers make and how to avoid flushing money down the drain. Mistake #1 – Failing to Check Credit The payer’s credit report lets you know how timely they have paid bills in the past. This is a good indicator of how they will pay on a seller-financed note. It also has a huge impact on how much an investor is willing to offer, should the seller ever decide to sell the note...

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Payment Histories Increase Note Values

Posted by on Apr 3, 2017 in Protecting Mortgage Note Values | Comments Off on Payment Histories Increase Note Values

Want top dollar when selling mortgage notes? Increase the value with payment histories! Keeping an accurate record of the payments received on a mortgage note is essential for knowing how much the buyer still owes.  This also establishes a record of their payment habits – with an added benefit. The value of a note can be improved by presenting note buyers a verifiable payment history! There are two main ways to keep track of payments on seller-financed mortgage notes: 1) outside serviced, or 2) seller direct. Professional Mortgage Note...

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Seller Financing – How Much Can The Buyer Afford?

Posted by on Mar 15, 2017 in Seller Financing Tips | Comments Off on Seller Financing – How Much Can The Buyer Afford?

Many sellers accept owner financing without any idea of how much the buyer can actually afford to pay. The last thing a seller wants is to stress over receiving monthly payments or worse, getting the property back through foreclosure. 3 Ways to Calculate Payment Affordability Before Accepting Seller Financing The amount a buyer can afford to spend on a house depends on their income, overall debt, cash they can put down, credit rating, and the mortgage terms. There are three different calculations that are traditionally used by mortgage...

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Seller Financed Notes and Interest Rates

Posted by on Feb 15, 2017 in Seller Financing Tips | Comments Off on Seller Financed Notes and Interest Rates

The interest rate a seller agrees to accept when providing owner financing to the buyer has a large impact on the note’s value. Unfortunately, many sellers overlook this important decision. Why Private Mortgage Note Interest Rates Matter Inflation Fighter Each year it seems the cost to buy the basics just keeps going up. It’s not your imagination; it’s inflation. In fact in July 2008 that inflation rate was 5.6 percent higher than in July 2007 (based on the Consumer Price Index reported by the U.S. Department of Labor on August 14, 2008)....

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What is Seller Financing?

Posted by on Jan 15, 2017 in Seller Financing Tips | Comments Off on What is Seller Financing?

When a seller allows a buyer to make payments over time for the purchase of property, it is known as owner financing or seller financing. This private financing by the seller can take the place of a bank loan or be in addition to a conventional mortgage. The payment amount, interest rate, and other terms are agreed upon between the buyer and seller. The amount financed by the seller will depend upon the buyer’s down payment and whether there are any bank loans. Here’s an example of how seller financing works… A property owner advertises...

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Use Outside Closings To Sell Mortgage Notes!

Posted by on Dec 15, 2016 in How to Sell My Mortgage Note | Comments Off on Use Outside Closings To Sell Mortgage Notes!

Ready to sell mortgage notes? Protect yourself with outside closings! When an investor has performed their research and is ready to purchase a private mortgage note they will ask the seller to deliver original documents (note, recorded mortgage, etc.) and sign the transfer package. The Note Buyer The note buyer will want these original documents before the funds are released to the seller. The Mortgage Note Seller A note seller may understandably wonder, “How do I know I will ever receive my money once I turn over the documents establishing...

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Sell Property Fast With Owner Financing

Posted by on Nov 15, 2016 in Seller Financing Tips | Comments Off on Sell Property Fast With Owner Financing

When a property isn’t selling most real estate agents are quick to suggest a reduction to the sales price. It is common to see the tag line “Price Reduced” added to for sale signs, listings and ads. Rather than just reducing price… consider offering owner financing to sell a property quickly! In today’s real estate market obtaining a mortgage can be a large stumbling block to home ownership. In the midst of this sub prime mortgage meltdown it is difficult to obtain a loan, especially for anyone with less than A+ credit and a 20% down...

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