How To Price Mortgage Notes in 3 Easy Steps

Are you a property owner considering a seller carry-back to sell a property faster?

A seller already receiving payments from the buyer on property sold?

One of the most common questions we hear from note sellers is “what is my mortgage note worth?” When you are looking to sell your mortgage note, finding the fair price for your mortgage note in today’s market is key in your decision whether to sell or not.

Here are 3 easy steps that brokers and sellers can use to receive pricing before they sell a note.

These situations leave many wondering how to determine the true value of an owner-financed note. The future payments on a note, deed of trust, mortgage, or land contract can be sold to an investor for a lump sum of cash today.

Even if a seller does not want to sell the payments it makes sense to obtain a quote or appraisal on the present value of this future cash flow once a year. After all, this is usually one of the holder’s most valuable assets.

Fortunately it is easy to obtain a free evaluation in these three easy steps:

Step 1 – Gather Copies of Documents

The first step is to gather copies of the documents. The primary documents utilized in the quoting process are:

• Settlement or HUD Closing Statement
• Mortgage (Deed of Trust, Real Estate Contract etc)
• Promissory Note, and
• Payment History Record (cancelled checks, bank statements, etc.)

Hopefully copies are easily accessible with the originals located in a safe deposit box or other secure location for safekeeping. If a seller later decides to sell the payments then the investor will ask for a few other documents plus the appropriate originals at closing. But for now these copies will be reviewed for an accurate quote.

Step 2 – Submit A Detailed Quote Request

The Quote Request Form on our site is a simple set of questions that gives us the information required to price your note. This intake form summarizes the transaction with most of the information obtained from the document copies. It includes details on the property type, buyer, repayment terms, and current balance.

You can access the detailed form page here.

Step 3 – Have a Short Conversation With Us

The third step once you’ve submitted the information is to send us copies of the documents above and schedule a quick conversation with us to discuss your note. This conversation is intended to provide us with information that is not necessarily contained in the note.

At Gardiner Capital Group, we’re focused on performing notes, and the most important aspect of these notes is the individual paying the mortgage. So understanding as much as we can about these individuals is crucial to our being able to offer you the most for your note. The amount we’re able to offer you will, most times, be correlated to the quality of the payor (pay and credit history).

We provide a free no-obligation quote within 24-48 hours for you to consider in your search. The quote is good for 30 days and is subject to formal due diligence, which includes review of the title, appraisal, insurance, buyer’s credit, and other underwriting items. The more information we have up front, the fewer “subject to” items we will include with the evaluation, which reduces the chances a bid will have to change during the process.