Usually, private mortgage holders sell their note in order to deal with urgent financial needs that require a large sum of money. The reasons may include paying off debt, taking care of medical bills, paying college tuition, paying legal fees, and so on. There are no restrictions on how you can spend the money derived from selling a mortgage note. If you need a large infusion of cash, this is often a good solution. Here is a step by step guide to selling your mortgage note in Texas.
There are a number of investment companies willing to buy your mortgage note, secured with a Texas Deed of Trust. After you contact the company and fill out the requisite forms(s), you’ll get a quote based on the current market value of the mortgage note. Be aware that there are many options available to you, when selling a mortgage note. You can sell the entire mortgage note, sell some mortgage payments now and receive the rest of the mortgage payments later.
Provide Pertinent Documents
For selling your mortgage note in Texas, you will need to provide copies of documents, including the settlement statement (HUD1), the promissory note, and the trust deed, or contract. Make sure you have the originals of these documents available (especially the promissory note) because they will be needed at closing.
The note buyer will provide you a written offer, which you formally accept or decline. This written offer states the price and specifies the conditions of closing including who is responsible for which costs. (Concerning costs and fees, be sure to check out Texas Note Buyers, which will absorb all costs .)
Wait for Review, Appraisal, and Title Search
Selling your mortgage note in Texas involves a series of closely related steps. These include:
Buyer review – Your mortgage note buyer has to perform a detailed due diligence review of the transaction. This includes a review of the buyer’s credit, tax, insurance status, and payer interview. The note buyer will normally also review additional documents such as payment history, insurance policy, and title report.
Appraisal – The note buying company will have to have the property appraised to determine its current value. This is usually in the form of a Broker’s Price Opinion (BPO) or a drive-by appraisal.
Title search – The purpose of the title search is to verify ownership of the property and determine if there are any outstanding liens on the property.
After successful completion of due diligence in selling your mortgage note in Texas, the final step is closing. During this step the note buyer prepares all the closing documents for the transfer of the mortgage note. In most cases, the title company or attorney will handle the closing… including the transfer of funds to you.
If selling your mortgage note in Texas seems overly complex and more than a little confusing, don’t worry, we are here to help.
Interested in selling your Texas mortgage note? Call us today at (772) 232-2383 or send us a message now!
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