Convert Your Mortgage Note into Cash
Want to convert your mortgage note into cash – that is, sell your mortgage note? Then you need to be aware of the steps involved. Otherwise, the process can become overwhelming and confusing. The tasks and tips laid out here apply to real estate notes, land notes, mobile home notes, and, any other promissory note secured by property. Here are a few things to be aware of… to make the process a little smoother.
Locate All Your Documents
Your first step to convert your mortgage note into cash is to locate all the documents used to close the property sale. These usually include (but certainly aren’t limited to) the mortgage or deed of trust, the promissory note, the closing and settlement statement, and the payor’s personal information including credit score (if you have it). This information will help the investor prepare an accurate purchase offer for your mortgage note.
Expect a Discount
To convert your mortgage note into cash involves a discount from the current note balance as investors have to offset the risk involved in purchasing a mortgage and at the same time make money. So investors expect to purchase a mortgage note for a price that will allow a return on their investment.
Provide Accurate Information
Nothing will delay the process when you want to convert your mortgage note into cash like providing inaccurate information. Be prepared to provide accurate documentation. And keep in mind, that investors will conduct due diligence and check everything out.
The Mortgage Purchase Agreement (MPA)
The Mortgage Purchase Agreement (MPA) lays out the terms and conditions of the investor’s intent to purchase the mortgage note for the agreed amount . When you sign the MPA and provide at least the promissory note and mortgage document, most investors will begin due diligence. The four primary things the investor has to check out are the credit of the borrower(s), the value of the property, the status of the title to the property and the payment history of the borrower(s).
Review the Mortgage Purchase Agreement
Make sure that you are receiving net offers… that there will be no undisclosed broker fees deducted and that the amount offered is what you will actually receive at closing.
In many cases, cash in hand is a better option than payments spread over months or years…. so looking to convert a mortgage note into cash is a great idea. If you decide to do this, cut down on the worry and hassle by working with experienced professionals.
We can help you turn your mortgage note into cash in ! Send us a message or give our team a call today! (772) 232-2383
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