How To Sell Your Mortgage Note

Owner financing is on the rise with more sellers agreeing to accept payments from buyers. There are many reasons people agree to take back a note, deed of trust, mortgage or contract including:

• Quick sale of the property
• Monthly income from the note
• No hassles of bank financing (fees, delays, and strict underwriting)
• More qualified buyers
• Property is hard to finance

Circumstances change and many sellers would prefer cash today rather than small payments that trickle in each month. Here are just a few reasons people have sold their note payments 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
• Accounting headaches, IRS regulations, paperwork hassles and the list goes on…

A note appraisal reflects the current market value of your payments similar to what a real estate appraisal provides for real property.  It shows what your future payments are worth in cash dollars today and is sometimes referred to as a “note analysis” or “quote”.

We recommend you have your note evaluated once a year as pricing may change based on market conditions

Many of the items that affect the value of your note were determined at the time the property was sold. However, there are three things that you can do now to make your note more valuable:

• keep good records and copies of the payments received,
• obtain a copy of the property insurance policy from the buyer each year; and
• verify the property taxes are paid  when they come due (usually twice a year).

This will help maintain the value of your important asset and avoid any unpleasant surprises.

We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.

Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your needs.