Are you tired of receiving monthly payments on your seller-financed note?

Do you long for a lump sum of cash today?

If you previously sold property with seller-financing, chances are you’ve wondered more than once about whether there’s any way to convert those monthly payments into cash now.

Well, if so, then you’re in luck! There’s a very good chance you can sell some or all of your mortgage note right now.

Here’s how to sell a mortgage note, trust deed, or real estate contract in 7 easy steps.

Step #1 – Request Quote

Just complete a short informational worksheet to receive a free no obligation quote. This can be submitted on our web site or we can lead you through the process over the phone.

Step #2 – Provide Document Copies

To get started, prospective note buyers will need 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 these originals will be requested at closing.

Step #3 – Accept Offer & Agreement

Once an offer is presented and accepted, the offer terms will be outlined in a written purchase agreement. In addition to stating the offer price, the purchase agreement will specify closing costs and responsibilities.

Step #4 – Note Buyer Review

The prospective note buyer will perform a detailed review of the transaction, known as due diligence. This includes a review of the buyer’s credit, current property tax and homeowner’s insurance status, payer interview, and other important items. The note buyer may also request copies of additional documents including a payment history, title insurance policy, and an existing title report.

Step #5 – Appraisal

The prospective note buyer will order an evaluation of the current property value. This usually takes the form of a Broker’s Price Opinion (BPO) or a “drive-by” (external) appraisal. The investor wants to be sure the property value is significantly greater than the unpaid balance on the loan. If the property 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, and looks for any liens that may have been placed on the property. It can sometimes save time and money to start with the title report that was run for the original property sale. If the title search reveals that money is still owed on a prior mortgage, that amount will usually be paid at closing from the note sale proceeds.

Step #7 – Closing

When all these steps are complete, the note buyer will send the final closing documents for signature. A title company or attorney’s office is typically used to handle the exchange of money for the original note and transfer of 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 the closing documents in advance of the closing date.

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!

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