Thinking About Selling Your California Trust Deed?
If you own a California trust deed, you’re probably not just thinking about selling it. More likely, there’s something you want the money tied up in that note to help you accomplish.
Maybe you’re planning for retirement, considering another investment, helping a family member, settling an estate, or simply deciding that you’d rather have access to your money now than collect payments for years to come.
Whatever brought you here, the first thing I want to understand is what you’re trying to accomplish.
I’ve been buying mortgage notes and trust deeds since 1989, and I’ve learned that there isn’t one solution that’s right for every note holder. Sometimes selling the entire note makes sense. Sometimes you may be able to raise the cash you need by selling only a portion of your future payments. And occasionally, after looking at everything together, keeping the note may be the better decision.
That’s why we start with your situation and your goals—not with an assumption that you should sell your note.
What Happens When You Call
One of the first questions I usually ask is:
“Have you ever sold a mortgage note before?”
Whether the answer is yes or no, my response is usually about the same:
“Okay… let me explain how the process works.”
We’ll talk about the note, the property securing it, the payment history, and any issues or circumstances I should know about. But just as important, I’ll want to understand why you’re considering selling and what you would like the money to accomplish.
Some people who call me have already decided they want to sell their entire note. Others are simply trying to understand what their note may be worth and what options are available.
There’s no pressure to make a decision during that first conversation. My job is to explain the process, answer your questions, and gather enough information to determine what may make sense for your particular situation.
Once we understand both the note and what you’re trying to accomplish, we can start looking at the alternatives.
What Determines the Value of Your California Trust Deed?
Once I understand what you’re trying to accomplish, the next step is to understand the note itself.
Two California trust deeds with the same unpaid balance and monthly payment can have very different values. That’s because we’re not simply buying a stream of payments. We’re evaluating the entire transaction behind those payments.
I’ll look at things such as the borrower’s payment history, the current balance and interest rate, the remaining term, the value and condition of the California property securing the note, the amount of equity, and the lien position.
We’ll also review the note and deed of trust documents and look for anything that could affect the value or the ability to complete a sale.
A strong payment history and substantial property equity can make a significant difference. But a note doesn’t necessarily have to be perfect.
We’ve purchased notes with late payments, documentation issues, unusual terms, title problems, and other complications. When there is a problem, the first question isn’t simply whether we’ll buy the note. It’s whether we can understand the problem well enough to find a practical way to deal with it.
Once I’ve reviewed those pieces, I can explain what I see, what may affect the value of your trust deed, and what options may be available to you.
Want to understand the factors that affect your note’s value? Read our complete guide on How Much Is My Mortgage Note Worth?
Do You Have to Sell Your Entire Trust Deed?
No.
One of the things that surprises many note holders is that selling a trust deed doesn’t necessarily mean giving up all of the remaining payments.
You can sell the entire note and receive a larger lump sum now. But if you need only a specific amount of cash, we can also look at whether selling a portion of your future payments might make more sense.
For example, you might sell the next several years of payments and retain the payments that come afterward. Depending on the note and how the transaction is structured, a partial sale can provide the cash you need today while preserving some of the future value of your note.
That doesn’t mean a partial sale is always the better choice.
Sometimes the note holder wants to be completely finished with the note and a full sale makes more sense. Other times, the amount of cash needed and the value of the note make a partial sale worth considering.
My job is to show you what the alternatives look like—the amount of cash each could provide and what you would retain—so you can decide which approach works best for you.
Sometimes the best solution isn’t selling everything. It’s selling enough. Learn more about how a partial mortgage note sale works
A Real California Trust Deed Transaction
We recently worked with a California note holder who owned a performing first deed of trust secured by a condominium in San Diego.
The seller was living overseas and initially wanted to understand his options for accessing some of the money tied up in the note. We discussed several possibilities, including keeping the note and using a HELOC, selling a portion of the future payments, or selling the entire note.
As we reviewed the note documents, payment history, property, title, and the seller’s objectives, we discovered an important issue involving the balloon date that affected our analysis. We worked through it, updated the alternatives, and ultimately the seller decided that a full sale made the most sense for him.
Because he was living in Italy, we also had to coordinate the closing from overseas, including a Remote Online Notarization and delivery of the original note.
The transaction was completed and funded.
It’s a good example of why I don’t believe in starting with a predetermined solution. We first needed to understand the note, the documents, and what the seller wanted to accomplish. Then we could work through the alternatives together.
Read the complete Real-Life Story: Selling a California Mortgage Note.
What Types of California Trust Deeds Do We Buy?
American Funding Group purchases a wide range of privately held real estate notes secured by property throughout California.
Most of the notes we purchase are first-position trust deeds, but we’ll also consider second-position notes when the property value, equity, payment history, and overall transaction make sense.
We purchase notes secured by single-family homes, condominiums, multifamily properties, commercial real estate, and certain land and other real estate. We also consider both individual notes and note portfolios.
And the note doesn’t have to be perfect.
While a well-performing note with good equity and a strong payment history will generally be easier to evaluate, we’ve also purchased notes involving late or missed payments, documentation problems, title issues, unusual terms, and other complications.
If there’s a problem with your note, tell me about it. I’d rather understand the issue at the beginning than discover it later. Many problems can be worked through once we know exactly what we’re dealing with.
If we can’t find a purchase structure that makes sense, I’ll tell you that too.
Why Work With American Funding Group?
Experience matters when you’re selling an asset that may represent years of future income.
I’ve been purchasing mortgage notes and trust deeds since 1989. Over that time, American Funding Group has purchased thousands of notes nationwide, including straightforward performing notes as well as transactions involving late payments, title issues, unusual documents, trusts, estates, and other complications.
But experience isn’t just about how many transactions we’ve completed. It’s knowing what to look for, recognizing problems early, explaining your choices clearly, and doing what we say we’re going to do.
You’ll know what we’re evaluating, where your transaction stands, and what needs to happen next. There are no upfront fees, and we’ll coordinate the due diligence, title work, document preparation, and closing.
Most importantly, you don’t have to decide what to do with your note before you call me.
We’ll look at the situation together. I’ll explain what I think is possible, answer your questions, and give you the information you need to decide what makes sense for you.
What Happens After You Decide to Sell?
Once we’ve agreed on a price and the type of sale that works for you, we’ll put the agreement in writing and begin the due diligence and closing process.
We’ll verify the payment history and remaining balance, review the original note and deed of trust, evaluate the property securing the note, and order the necessary title work. Depending on the transaction, we may also need additional information about the borrower, property, or documents.
If something unexpected comes up, we’ll explain it. Sometimes an issue is minor and easily resolved. Other times it may affect the value or structure of the transaction. Either way, you should know what’s happening and why.
Once the due diligence is complete, we’ll prepare the documents needed to transfer the note and coordinate the closing. We handle the details and keep you informed throughout the process.
Most transactions are usually completed within four weeks when the documents and information we need are readily available. More complicated transactions may take longer.
There are no upfront fees to sell your note to American Funding Group, and we’ll explain what to expect before you commit to the transaction.
Our goal is simple: no surprises. You should know where your transaction stands, what we’re waiting for, and what happens next.
What If Your California Trust Deed Has a Problem?
Not every trust deed we look at is performing perfectly.
Maybe the borrower has fallen behind or payments have become inconsistent. Perhaps there’s a title issue, missing documentation, an unusual provision in the note, or another problem that has made you wonder whether anyone would buy it.
Don’t assume that a problem makes your note unsellable.
I’ve purchased mortgage notes with late or missed payments, documentation and title issues, unusual terms, and other complications. Some problems can be resolved before a sale. Others may affect the price or require us to structure the transaction differently.
The important thing is to tell me what you know about the problem from the beginning.
We’ll look at the payment history, property and equity, lien position, documents, title, and the circumstances surrounding the issue. Then I’ll tell you whether I think there’s a practical way to move forward.
Sometimes there is.
Sometimes there isn’t.
Either way, you’ll have a clearer understanding of where you stand and what your options may be.
We Buy Trust Deeds Throughout California
American Funding Group purchases privately held mortgage notes and trust deeds secured by real estate throughout California.
We’ve evaluated notes secured by properties in major markets such as Los Angeles, San Diego, Orange County, Sacramento, the Bay Area, Riverside and the Central Valley, as well as properties in smaller California communities.
Where the property is located matters because the strength and value of the collateral are important parts of evaluating any trust deed. But you don’t need to be located near us—or even live in California—to sell a note secured by California real estate.
In fact, in one of our recent California transactions, the property securing the deed of trust was a condominium in San Diego while the note holder himself was living in Italy. We were able to coordinate the due diligence, title work, documents and closing remotely.
So whether you live in California, another state, or somewhere outside the United States, what matters is the note, the property securing it, and whether we can put together a transaction that works for you.
Experience Is Important. So Is Trust.
Selling a trust deed means transferring an asset that may represent a substantial amount of money. You should be comfortable with the people you’re dealing with before you make that decision.
American Funding Group has been purchasing mortgage notes and trust deeds since 1989. We’re a veteran-owned business, have an A+ rating with the Better Business Bureau, and have worked with note holders nationwide for more than three decades.
But I’d rather have our clients tell you what it was like to work with us.
In their reviews, sellers frequently mention straightforward communication, having the process clearly explained, being kept informed throughout the transaction, and—most importantly—having us do what we said we would do.
Those are the same standards I expect from every transaction we handle.
Read What Our Clients Say About American Funding Group.
Frequently Asked Questions About Selling a California Trust Deed
Can I sell a California trust deed if the borrower is still making payments?
Yes. In fact, many of the trust deeds we purchase are performing notes with borrowers who have established a consistent payment history. A strong payment record can be an important factor when we evaluate the note.
Can I sell only part of my trust deed?
Yes. You don’t necessarily have to sell all of your remaining payments. Depending on your note and how much cash you need, a partial sale may allow you to receive money now while retaining some of your future payments.
How much is my California trust deed worth?
There isn’t a single percentage or formula that accurately values every trust deed. We consider the remaining balance and payments, interest rate, payment history, borrower, property value and equity, lien position, remaining term, documents, and other factors that may affect the risk and value of the note.
Can I sell a trust deed if the borrower is behind on payments?
Possibly. Late or missed payments don’t automatically make a trust deed unsellable. We’ll need to understand the payment history, property value and equity, lien position, documents, and the circumstances surrounding the delinquency before determining whether we can make an offer.
Do I have to live in California to sell a trust deed secured by California property?
No. The note holder can live in another state or even outside the United States. We’ve completed a California trust deed purchase where the property was in San Diego and the note holder was living in Italy.
How long does it take to sell a California trust deed?
When the necessary documents and information are readily available, we can usually complete a note purchase within four weeks. Transactions involving title, documentation, borrower, or other issues may take longer.
Are there upfront fees to sell my trust deed?
No. American Funding Group does not charge an upfront fee to evaluate or purchase your trust deed.
About American Funding Group
I’m Kevin Clancy, Company President. I am a graduate of the US Coast Guard Academy. After years of military service and high-level corporate financial experience, I’ve dedicated myself to helping people prosper in real estate as one of America’s most trusted mortgage note buyers.
Our company’s core values are:
1) We do what we say, including overcoming obstacles other note buyers can’t overcome.
2) We communicate with you every step of the way so that we can close your sale ASAP.
3) And most importantly… “We treat You with respect because that’s the way we want to be treated.” That attitude has helped us become one of the most trusted note buying companies.
Ready to Talk About Your California Trust Deed?
If you’re considering selling a California trust deed, you don’t need to have everything figured out before you contact me.
Tell me a little about your note, the property securing it, and what you’re trying to accomplish. I’ll explain how the process works, answer your questions, and help you understand what options may be available.
If selling the entire note makes sense, we’ll discuss that. If a partial sale might better accomplish your goals, I’ll explain how that could work too.
And if there’s a problem with the note, tell me about it. We’ll look at that together.
Call me at (772) 232-2383 or complete the confidential note evaluation form below.
There’s no obligation and no upfront fee. The first step is for us to understand what you own and what you’d like it to accomplish.
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