May 18, 2024


Mad about real estate

Selling Mortgage Note – Get The Facts First

You may be in a similar situation as many others are today, in need of cash for some unexpected financial burden.  When your fluid assets aren’t enough to cover life’s little inconveniences, you may be interested in selling mortgage note.  A sale of this kind should be entered into carefully.

If you’ve had an owner finance arrangement or similar deal where you have a valued vested interest in a property, it might be an advantage to sell that note to an individual who has need of investing some funds or wants to become involved with a business that the borrower might be running.  If you are like the majority of people, you don’t have an idea how to go about this process.

First, you should understand that there are a number of different ways to go about selling mortgage note.  It is possible to sell a portion and still maintain some ownership and save some future earnings.  This places you in a position of being able to buy back the note at some future date, depending on the life of the structured payback by the original borrower.

Another selling tactic is to sell a specified number of future payments from the borrower.  If this can be negotiated, you take less money to have the revenues in advance.  This arrangement can be set up in a split payment purchase, where you sell a portion of the future payments, allowing yourself to keep some of the income.

Whatever the situation you would like to pursue, don’t attempt to do it on your own.  There are professionals who can guide you so you get the best value when selling mortgage note.  With the many ways that you can make an error, it is to your advantage to consult with someone who deals with these type acquisitions on a regular basis.

You may not be sure if you are in the position to carry out this kind of sale legally.  A mortgage note broker can quickly make a structure agreement assessment and tell you what avenues you have available to you, and which ones of those are in your best interest.

What types of mortgage notes can you sell?  Most brokers handle mobile homes, multi-family condominiums, fee simple townhomes, improved or unimproved land, commercial properties, and single-family residences.  Legalities vary from state to state, and even from township to township.

Sometimes the selling mortgage note scenario does not work to the advantage of the note holder.  The downside of the deal might be too much for the value of the sale.  You won’t be able to make a fair assessment of your situation until you get all the facts.

When you are sure of your intentions and want to look into this, call a certified broker in the business of mortgage notes and get a free evaluation of your note’s value.  They will be happy to give you a quote and keep the entire inquiry confidential.