How To Sell Your Mortgage Note
How to Sell Your Mortgage Note
Tired of receiving monthly payments?
Wishing for a lump sum of cash today?
If you sold property with seller financing chances are
you’ve wondered about selling the real estate note. Here’s how to sell a mortgage note, trust
deed, or contract in 7 easy steps.
Step #1 - Request
Quote From Sand Dollar Notes
Just complete the Online Note Quote form to receive a
free no obligation quote. This can be
submitted online or over the phone.
Step #2 - Provide
Document Copies
To get started note buyers like to see copies of these three
documents:
Settlement Statement
Promissory Note
Mortgage, Trust Deed, or Contract
It is also a good time to be sure you know where the
originals are located, especially the Promissory Note, as they will be
requested at closing.
Step #3 - Accept
Offer & Agreement
Once an offer is accepted it will be outlined in a written
agreement. In addition to stating the
price, the agreement will specify conditions of closing and who pays costs.
Step #4 - Note Buyer
Review
The mortgage note buyer will perform a detailed review of
the transaction, known as due diligence.
This includes a review of the buyer’s credit, current tax and insurance
status, payer interview, and other important items. They may also request copies of additional
documents including a payment history, insurance policy, and existing title
report.
Step #5 - Appraisal
The note investor will order an evaluation of the current
property value. This usually takes the
form of a BPO or drive-by appraisal. The investor wants to be sure the property
value is still equal to or greater than the sales price. If the value comes in low, the note investor
may present a revised offer for consideration.
Step #6 – Title
Search
The title search verifies ownership of the property and the
mortgage note. It saves time and money
to work with any title report that might exist from the original sale
date. If the title search shows money is
still owed on a prior mortgage it will usually be paid from proceeds.
Step #7 - Closing
When all steps are complete the note buyer will send the
final closing documents for signature.
The title company is often used to handle the exchange of money for the
original note and transfer documents.
Funds are typically paid in the form of a wire transfer or cashier’s
check. You are also encouraged to have
your attorney review and advise with the closing process.
Selling your mortgage note can be a simple process when you
work with an experienced note buyer.
Just take a few minutes upfront to gather your information and documents
and they will handle the rest for you!
For more information go to https://www.sanddollarnotes.com to download your free copy of The Note Selling Formula
April Banda
Head of Acquisitions
Sand Dollar Notes
559-648-3669
april@sanddollarnotes.com