What is A Mortgage Note and How To Sell Your Mortgage Note

sell your mortgage noteWondering How to Sell Your Mortgage Note?  A mortgage note is simply a promissory note in which the person receiving the monthly mortgage payments acts like a bank, credit union, or mortgage company. And, sometimes the holder of the note is better off with a large lump sum of money instead of monthly payments.  So let’s investigate  how to sell your mortgage note.

Risks of a Mortgage Note

Although a mortgage note can usually be easily sold, there are certain risks. First, the note holder assumes the same risks as a bank. While he has the benefit of earning interest, there is always the risk that the borrower won’t make make his payments on time.  Here are a few things to consider if you’re thinking about continuing to hold the note or sell your mortgage note:

  • Is the property likely to depreciate due to neglect or a bad location?
  • Will your financial situation be threatened if the borrower is late on payments or defaults entirely?
  • Is the borrower carrying the proper insurance so that you will be covered in the event of a disaster?

Why Sell Your Mortgage Note

One of the advantages of owning a mortgage note is that it can usually be sold to a mortgage note buyerwho specializes in buying private mortgages. Normally, you will be able to can sell the entire note or a portion of it depending on your needs.  Common reasons for selling a  mortgage note include:

  • Eliminating the risk and worry of default
  • Freeing up funds for another invesstment
  • Paying college tuition
  • Settling a divorce
  • Dividing an estate
  • Needing capital to start a business

How to Sell Your Mortgage Note

 If you do decide to sell your mortgage note, here’s what the process involves.:

  • Gather all the information and documents concerning your note: property information, promissory note, interest rate, payment history, borrower’s creditworthiness, and so on. The more information and documentation you can assemble, the better off you’ll be.
  • Provide all the pertinent details to a note buyer that purchases mortgage notes and get an offer.
  • Get the offer in writing… usually called a Mortgage Purchase Agreement
  • Accept or decline the offer
  • Wait for the mortgage note buyer to complete the due diligence
  • Receive and execute the closing package supplied by the note buyer
  • Close the deal and receive payment

Normally,  there are no constraints on the amount of the note you can sell.  It can be the entire mortgage note, a specific amount now and then payments later, or a percentage of each scheduled payment. As selling a mortgage note can be complex and somewhat confusing, we will happily provide any assistance you need.

Send us a message or give us a call today to learn more! (772) 232-2383!

Primary States in Which We Buy:  |Alaska| Arkansas| Alabama |  Arizona |California | Connecticut |Colorado| Georgia |Hawaii|Florida Idaho| Iowa | Illinois |Indiana | Kansas |Kentucky |Louisiana| Maine | Maryland |Michigan | Minnesota | MIssissippi | MissouriMontanaNevadaNew Hampshire | New Jersey | New Mexico New York |North Carolina |North Dakota | Ohio |Oklahoma | Oregon| Pennsylvania| South Carolina |Tennessee| Texas | Utah| Virginia | Washington | Wisconsin |West Virginia | Wyoming|

Some Top Florida Markets:  BartowBoca RatonBradenton|  Bonita Springs Brooksville|Cape Coral Clearwater |Crystal River |Dade City | Daytona Beach | Defuniak Springs | DelandDeltona Fort LauderdaleFort Pierce | Fort Myers | Fort Walton Beach |Gainesville  |Haines City |HialeahHollywoodHomosassaHudson|Jacksonville |
Jensen BeachKey Largo | KIssimmee | Lake City | Lakeland |Lehigh Acres |Leesburg|Live Oak Marathon | MelbourneMiami |Miami Gardens| Milton | Naples| New Port Richey | North Fort Myers |OcalaOkeechobee | Orlando |Palm Bay Palm Coast | Panama City |Pembroke PinesPensacola|Polk City | Port Charlotte | Port Orange |Port Richey |Port St Lucie| Sarasota | St Augustine | St Petersburg |Spring Hill | Stuart |Tallahassee|Tampa Vero Beach |West Palm Beach| Winter HavenWeeki Wachee |Zephyrhills |

Some Top Texas Markets: Abilene |AmarilloAndrews| Arlington |Austin | BaytownBeaumont | Beeville|
Big Spring|Brownsville | Carollton | Cleveland |Clifton | Conroe | Corpus Christi|Dallas |Del Valle  |Eagle Pass | El Paso |Fort WorthFrisco | Galveston | Garland | Granbury | Grand PrairieGreenvilleHarlingen| Houston Humble | Irving | Kaufman| Kerrville KIlleenLaredo
LubbockMcAllenMesquite | Midland| Mission McKinneyOdessa | Pasadena | Plano |Port Arthur | San Antonio | Seguin | Spring | Temple |Tyler Victoria Waco | Weslaco | Wichita Falls | Willis |

Looking To Sell Your Mortgage Note?

We can help. Just give us a call or submit the form below and we'll evaluate your note and make you a fair cash offer.