Selling Your Mortgage Note

How To Sell Your Mortgage Note

 Tired of receiving monthly payments?

Wishing for a lump sum of cash today?

Did you know that you could sell all, or part, of your payments for cash today? Many people aren’t even aware they can sell their mortgage note. If you’re curious how to sell a mortgage note for cash, we’ve included seven easy steps on the process below.

Step #1 – Request Quote

If you’re wondering how much cash your note is worth, start the process here to receive a free no obligation quote. This can be submitted online, by fax, or over the phone. This is the first step in selling your mortgage note and starts the valuation process.

Step #2 – Provide Document Copies

To get started selling your mortgage note, note buyers like us like to see copies of these three documents prior to providing a price quote for your mortgage note:

Settlement Statement
Promissory Note
Mortgage, Trust Deed, or Contract

It is also a good time to be sure you know where the originals are located, especially the promissory note, as they will be requested at closing when you sell your note. Good record keeping is also very important in maintaining the value of your note.

Step #3 – Accept Offer & Agreement

After providing your documents, we’ll provide you a quote tailored to your needs. If the offer is acceptable, you’ll be provided a written purchase agreement to sell you mortgage note. In addition to stating the price, the agreement will specify conditions of closing and who pays costs.

Step #4 – Note Buyer Review

When selling your mortgage note, the note buyer will perform a detailed review of the collateral, property, and title, known as due diligence. This includes a review of the buyer’s credit, current tax and insurance status, payer interview, and other important items. At this stage, they may ask for other copies of additional documents like payment history, insurance policy, and existing title report. Having these documents handy will speed the process along and help you get cash for your note faster.

Step #5 – Property Appraisal

The underlying real property that secures the mortgage note is also very important. During the due diligence process, the mortgage note buyer will perform a valuation of the property to confirm its value. This is usually done with a broker’s price opinion (BPO) or drive-by appraisal. When buying your note, the investor wants to be sure the property value is still equal to or greater than the sales price. Many times this value is discussed prior to the offer, however if the property value comes in lower than expected, the mortgage note buyer may revise the offer for consideration.

Step #6 – Title Search

The title search helps the mortgage note buyer verify who owns, or has legal title, of the property and the mortgage note. This process can take some time, so if you have an existing title report from the original sale, sometimes this can save some time when selling your mortgage note. The title search will show any underlying payoffs or liens that must be cleared before the note can be sold. If there is an existing, or underlying, mortgage on the property, this will usually get paid off at closing.

Step #7 – Closing

Finally, when all of these steps have been completed to sell your mortgage note, the mortgage note buyer will work with the title company to send the final closing documents for signature. The title company often handles  the exchange of money for the original note and transfer documents. Sale proceeds are usually sent in the form of a wire transfer or cashier’s check. During the process, you should have your attorney review and advise with the closing process.

Selling your mortgage note can be very easy and simple when you work with an experienced note buyer. Spending a few minutes upfront to gather your information and documents allows them to and handle the rest for you!

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