Should You Sell a Mortgage Note?

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December
21

If you are holding a seller-financed note, you may be in a position that you never really planned on being in. So many people put their real estate property on the market and expect to eventually walk away from the closing table with cash in hand. Yet the fact is that many sellers find they must carry an owner-financed note for the buyer to make the deal work and to actually sell the property. If you are now holding such a note, you may be debating between deciding whether to sell a mortgage note or keep holding on to it.

This is a fairly big decision, and one that you should not make lightly. It is important to weigh the pros and cons. When you hang on to such a note, you will find that you have to service this note, which requires you to keep up with payments the payee makes, monitor and track the pay down of the principal of the loan and more. There is also a risk that the payee could default, which could put you in the position of paying legal fees and possibly even lose money.

There are some benefits of selling your note to consider. When you sell a mortgage note, you will be able to exchange your note for cold, hard cash, and you can use this cash in a variety of ways. You will lose a small amount of money when you sell a mortgage note because you will not get face value for the note. However, you can take your cash and invest it in a less risky investment vehicle like a mutual fund, a CD or another similar investment. You can also use your cash for other purposes such as paying off debts, renovating your home and more. You will need to decide for yourself whether to sell or hang on to your note, but these are considerations to keep in mind as you make your decision.

Want To Sell Mortgage Note? Click Here!

December
20

So many people today find themselves holding on to a seller-financed note rather than cold hard cash. There are a few people who view holding a note as an investment because it gives them a (hopefully) steady stream of cash each month when the payee makes a mortgage payment to you. However, holding a seller-financed note can also be a headache because it means that you have to keep track of when the payee actually pays, monitor the balance of the note and more. So it is not a surprise if you are now wondering, “Is there a buyer for my mortgage note?”

The fact is that while a seller-financed note can be an investment, you can actually turn that note into cash and use that cash in whatever way you want or need. You can keep it as an investment and put it into a retirement account or the stock market, which is another way to invest your money but one that requires a lot less effort on your part. You can use your cash for any number of other things, too, such as buying a new home, renovating or updating your home, paying off debts and more. However, before you can get your cash in hand, you need to answer the question – is there a buyer for my mortgage note?

You can absolutely sell your seller-financed note for cash. There is a cost for doing so, which means that you will not get face value on your note. The only way to get the face value is to ride out the note and continue to accept payments from the payee. However, you can sell your note now and get the cash in hand to do with it what you wish. You simply need to start today by getting a quote to see what your options truly are. If you decide to pursue the offer, you can have the cash in your hand in just a few days!

Looking For A Buyer For Your Mortgage Note? Click Here!

Why Are Mortgage Notes Useful?

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August
20

Mortgage notes are not a new form of financing, and have been very popular over the last decade in helping people to sell and buy property. They allow a buyer and a seller to come to an agreement where finances are concerned and where both parties can be happy with the arrangement. A seller will finance the buyer for part or all of the purchase price on a piece of property. The buyer is bound to repay the agreed amounts over a set period of time and then make a balloon payment at the end of the term.

There are many companies that will purchase mortgage notes. They will not pay 100% of the mortgage note value, and will only purchase an amount thereof. Therefore , it is important that you shop around for the best value buyer of your mortgage note.

The price that you will be offered on your existing mortgage note will be dependant on a few things. Some of them are; the interest rate on the existing mortgage note, the term of the note and the credit of the debtor or buyer as well as the current value of your home.

All mortgage notes terms are negotiable. This means that when a vendor is setting up a mortgage note with a purchaser they can stipulate the term, frequency of payments, the interest rate, the method of compounding interest, if there are options to sell the note as well as the consequences of not making repayments and the various methods of foreclosure.

Mortgage notes can be a very useful way for a buyer to attain property where they may not have otherwise been able to. It is also a good way for a seller to off load a property that may have had difficulty being sold in a conventional manner. As with all finance agreements between individuals, it is always best to seek advice from a financial advisor prior to signing any documentation.

Click Here To Get A Free Quote On Your Mortgage Notes!

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What Are Seller Financed Notes?

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August
18

Seller financed notes are a loan that is provided by the seller of a property where no money has been loaned to the buyer. Also called vendor/owner finance or owner carry back, this is a good way for both the owner of the property to sell and also for a buyer to get into the property market or secure property if they found it difficult to secure a loan amount.

For example, if I had a home and was wanting to sell it but was approached by a buyer who could only get finance for part of my asking price, I could offer seller financed notes for the remaining amount of the asking price. This would secure me a sale of the property, as well as ongoing agreed payments on the balance of the property.

Or, to look at it from the other angle; if I was wishing to buy a property and did not have the approval for finance by a bank due to any number of credit history and/or income reasons, then I could approach a seller and ask if they would be interested in seller finance notes and come to an agreement on repayments and terms.

There are often balloon payments that are factored into these agreements. Often times the balloon payment will come at the  end of the agreed term of seller finance and will be the remaining amount of what is owed. It is a good idea for the buyer to seek finance on the balloon repayment and use the history of regular repayments on the seller financed notes as a reference for their credit history.

There are many companies that will buy seller financed notes. This can be attractive to the sellers as they may need the remaining amount that is owed on the property they have provided finance on in a lump sum now. These companies don’t necessarily pay you 100% of the note value and shopping around for the best price on your note is highly recommended.

Want To Sell Your Seller Financed Notes? Click Here!

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August
16

Seller financing has been around for years, and has been a creative financing option that allows buyers and sellers to come to a financing agreement without the need for bank financing. In recent years with the downturn of the economy and tighter bank lending parameters, seller financing has become even more prevalent. However, while many sellers are agreeable to structure such financing to get the property sold, very few sellers want to service the loan and accept small monthly payments for the entire life of the loan. Instead, many sellers will sell the note they are holding a mortgage note buyer, who in turn will give them a lump sum cash amount.

When you approach a mortgage note buyer, there are certain factors that the company will consider with regards to the loan you are holding. The buyer will not make an offer for 100% of the face value of the loan, but instead will make an offer lower than face value that takes into a variety of factors. They will consider basic criteria such as the credit history of the debtor, the amount of the loan, and the interest rate. They will also look at other factors such as the method of compounding interest, nonpayment consequences, foreclosure methods dictated in the note, and so forth.

After you get a cash offer from a mortgage note buyer, you will need to then make the decision to proceed with executing the cash offer and signing the loan over to them. If you do, you will enjoy the stress-free lifestyle of not having to worry about collecting monthly payments on the loan each month. Your other choice is to continue collecting the payments and servicing the loan for the life of the loan, which may involve additional costs to you if the debtor defaults on the loan at some point.

Looking For A Mortgage Note Buyer? Click Here!

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Who Will Buy Mortgage Note Paper?

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August
14

You spent a long time trying to find a buyer for your residential or commercial property. You likely were patient while your potential buyer went from bank to bank in search of financing. With many buyers running into difficulty getting the financing they need in light of the current economic downturn,  you then found yourself in the position to finance the buyer’s note yourself. This in turn led to negotiations with regards to financing terms. Finally, you walked away from the closing table with your property sold. While this certainly was a relief to you, you are now in the position to act as a loan servicing agent, collecting monthly payments on your seller financed note, when what you really wanted was to walk away from the closing table with a lump sum of cash in your hand. The good news is that you still can get that lump sum of cash you want or need when you find someone who will buy mortgage note paper.

There are companies,  known as note buyers, who will make you a cash offer on the loan you are holding. Note buyers will buy mortgage note paper after considering several factors, which include the value of the property, the credit of the debtor, and the interest rate and the term of the loan. Your offer will not be at 100% face value of the loan, but will be a reasonable offer based on all applicable factors of the loan. So the fact is that you will lose a small amount of cash over the long run, but if you need the cash now, selling your note is often the best way to go. The other option, of course, is to continue servicing the loan and collecting small monthly payments on the note for the life of the loan.

Looking for Someone To Buy Mortgage Note? Click Here!

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August
12

If you are stuck holding mortgage notes, or seller financed loans, you aren’t alone. Seller financing has been around for years and years, so this isn’t a new thing by any means. However, the fact is that in recent years, the downturn in the economy caused more sellers to hold notes for their new buyers just to make their deal happen. And often a seller was forced into holding a note when he or she really just wanted to get a lump sum of cash.

If this sounds like you, rest easy because the fact is that you can sell mortgage notes to note buyers. Note buyers are set up to buy such seller financed loans, and in turn can put that desired lump sum of cash in your pocket. However, note buyers will not assume the risk and debt of holding the loan and let you walk away with a huge amount of cash without financial incentive. The financial incentive note buyers will structure with their offer to buy your loan is in the form of an offer that is at less than 100% of the face value of the loan. The actual amount of the offer you receive will be dependent on several factors. Note buyers will consider the credit of the debtor, the value of the property, and financing terms in place such as the term of the loan and the interest rate.

It is important to note that some note buyers will not make offers on certain loans, such as those with a debtor with poor credit. However, it is often factors such as these that drove you to take on seller financing in the first place, and there are some note buyers who will work with you and make an offer that takes into consideration all of these factors.

Click Here To Get A Free Quote On Your Mortgage Notes!

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Options for Seller Financed Notes

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August
10

Sellers and buyers of both residential and commercial property have used seller financing for years, which essentially means that the seller of the property is holding the new loan for the buyer of the property. In the past, this kind of financing was largely used when a buyer needed financing to purchase a property but time was an issue, as seller financed notes don’t have to go through the typical loan approval process that banks provide. However, in more recent years, with the economy going downhill in a fast way, properties in many parts of the country losing value, and many property owners finding their adjustable rate mortgage payments skyrocketing and putting them at risk of foreclosure, a perfect storm was created that resulted in seller financed notes becoming a necessity for many buyers and sellers to reach a deal.

If you find yourself holding such a note, you are likely not in the position you want to be in. Rather than accepting monthly payments for the property you’ve sold, you would much rather have (or perhaps even need) a lump sum of cash. The fact is that you can continue to hold your note and continue collecting monthly payments, slowly recouping your cash. Or you can try to find someone who buys seller financed notes. When you sell the note you are holding, you should expect to receive an offer for less than 100% of the face value. The actual amount that a note buyer will offer you will vary depending on the structure of the financing terms, such as the interest rate, the amortization, the term, and the amount of the loan. However, when you accept the offer that the note buyer provides to you, you will get that lump sum of cash you needed when you sold your property initially.

Want To Sell Your Seller Financed Notes? Click Here!

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What Is a Mortgage Note Buyer?

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August
08

When it comes to real estate, note buying is important. A seller may decide to sell his home and then decides to take a certain amount of money as a down payment and the rest he gets as monthly payments until it’s paid off.

Think about a situation where a person is in need of cash fast and this is a great time when a mortgage note buyer can be beneficial. Sellers can get in touch with note buyers and they can then sell their note. These notes are known as monthly installments that the buyer is responsible for paying.

The buyer pays payments to the person who bought the note from the current seller. The notes can all be sold or part of them can be sold by having an agreement that either part or all of the payments will go to until it is all paid in full.

There is however other ways on how these notes can work. The mortgage and note buyer as well as the seller can decide on and can divide the payments between the both of them. The seller will choose the option and can all depend on their requirements for cash.

There are certain standards which note buying is based on. The first thing to consider is any balance that may be outstanding as well as the time until the notes value materializes. Another thing taken into consideration is the property’s value.

There are a few different mortgage note buyer companies out there that buy these mortgages in exchange for a sum of money. This is a very easy and simple process and the note holders place the notes on a bid. Investors look over the notes and make sure they are a fit for portfolios that they have. The investor gets the notes while seller gets payment at end of the process.

This process may sometimes involve fees that include escrow fees, transaction fees, certifications and others.  This fee is determined between the buyer and the seller during the contract and transaction.

Looking For A Mortgage Note Buyer? Click Here!

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How Do You Buy Mortgage Note?

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August
06

Mortgage notes are also known as private mortgages or hard money lending when personal money is used to purchase and financing a property. In return for doing this, you are going to receive principal monthly as well as interest payments until the note is paid in full. There are a few things to keep in mind when you are looking at buying mortgage note.

The best place to start is to get a note broker as they can act as a liaison between borrowers as well as the investor that are looking to buy your note. You can use the yellow pages to help you find a mortgage broker to see if they have the option to buy mortgage note.

Sign a legal contract as well as a promissory note and when you do fine a note that you want to buy, make sure an attorney makes a contract between both you as the buyer and the seller. The lawyer or attorney can both write up the promissory note and the contract. Both the seller and the buyer need to sign it and agree to it before it can be considered a legal agreement between both parties.

Next, set up the escrow payment and then establish the funds after the terms as well as the conditions are written up. Escrow is the account where the money is placed that you are loaning for the purchase. A third party will manage the account so that funds are equal and fair with agreement to the terms of the agreement.

Make sure you get your returns on the investment and each month you are going to receive checks from the escrow fund. This will happen each and every month until the note is paid in full.

A typical mortgage note rate is in the range of 12% to 15% for note buyers. An escrow account is where the funds are deposited for the payments that are made by the borrower on the mortgage. Funds are dispersed one the time each month has come.

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