Can Get You The Capital You Require When You Decide To Sell Your Mortgage Note

Putting up mortgage notes for sale is not without its own set of problems. There are

some concerns that sellers should note in order to realize a tension-free settlement.

Today, the mortgage industry in the US is highly structured and has specialized

professionals who do the thinking for you.

There are several websites that enable you to get the best deal from the notes

available for sale. Listings are posted by the sellers, and the Internet-based company

acts as a mediator trying to validate the listing and the price attached with the notes.

In situations where you are holding the mortgage and receiving payments from the

sale of commercial and residential real estate, and you are want to cash in on those

payments, there are service agents who provide help. Furthermore, the service

agents can also help you if you are holding a note from the sale of a business or

vacant land.

Cash For Mortgage Note – There are several options before you. With the help

of specialized service agents or brokers, you can sell the mortgage note and let

someone else worry about late payments. These mortgage notes are called seller

financed notes or seller carry back notes, and are purchased by investors who will

pay you the value of the note (which would be slightly lower than their current

market value) and then take over your tensions of waiting for the payments every


There are several other options as well. If you require some cash now, but still want

to retain the security of receiving a monthly income, you can choose to sell part of

the note. Mortgage brokers have ready-made solutions for all your problems. Experts

feel that in an era of stiff competition and confusion over notes, it is a good idea to

seek the services of these mortgage brokers. However, while selecting the mortgage

broker, experts advise that you will need to be cautious. It also helps to do some

research on the agent and his or her previous record.

The note spells out the terms of repayment. In this case they agree upon 8.5

percent interest at $ 1,211.04 per month based on a 360-month amortization. The

seller doesn’t really want to wait a full 30 years for payments, so the note requires

payment in full, known as a balloon payment, within seven years.

A title company or real estate attorney is used for the closing to be sure all parties

are protected and the documents are in compliance with and state laws.

Bank Loan Vs Seller Financed Mortgage Notes

Because the buyer is making payments to the seller rather than an institutional

lender, the legal arrangement is called a private mortgage, seller carry-back,

installment sale, or owner financing.

The seller has the same mortgage rights as a bank, so if the buyer does not make

payments, the seller can foreclose and take the property back.

When the seller prefers cash today rather than payments over time, the rights to

future payments can be sold or assigned to a note investor on the secondary market.

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