Have you heard? Folks are selling their owner-financed mortgage notes and trust deeds every day for various reasons and using the lump sum of cash they receive for more urgent or prudent purposes.

Why are they selling? It usually comes down to one of two things … a need or a want.

Common needs include paying for college tuition or increasing property taxes, eliminating high-interest credit card debt, or perhaps dealing with an unexpected and large medical expense.

Typical wants include purchasing a new car or boat, taking the family on a dream vacation, or making some long-overdue updates to the old homestead.

Each of these needs and wants alone could make selling an owner-financed note the right decision. But even when you don’t have any pressing needs or wants, you may still want to consider these top five reasons to sell your note for cash today!

Reason 1 – The Housing Market is Unpredictable

The news is filled with conflicting stories about the certain and impending rise (or fall) of the housing market. Since none of us have a crystal ball, this uncertainty can lead to some serious anxiety for a note holder.

Mortgage notes are a great investment … until the borrower stops paying. Should the housing market “correct” and lead to a significant decrease in property values, your borrower may find themselves “upside down”, owing more than the house is worth. That could be a real disincentive for them to pay their mortgage payment each month.

Dealing with a delinquent payer is bad enough, but doing so in a down market makes things even worse. No lender wants to take back a house only to find that it’s not worth the value of the paper.

Reason 2 – Interest Rates Are Historically Low

We are coming off a long run of banks and non-banks generously lending to home buyers. Mortgage interest rates have been low for a very long time and remain at historically low levels.

Owner-financed buyers who have improved their credit and are now “bankable” will undoubtedly be looking to refinance out of their higher-interest rate loans.

Now may be the opportune time to sell your note and put that lump sum of cash to work elsewhere.

Reason 3 – Stability (or Lack Thereof)

It’s no surprise to any of us that just about everything moves faster than in days gone by. We may long for the “good ole days” and some time to catch our breath, but it’s not likely to happen.

The world moves at warp speed, the stock market dips and turns like your favorite roller coaster, tempers flare at home and abroad over so many hot-button issues.

All this turmoil combines to create an unstable environment for financial markets, including mortgage lending (and owner-financing). Things could certainly go in your favor … but, perhaps not.

The question you must ask yourself is whether to roll the dice on the future economy or “cash out” (sell you note) to recapitalize and secure your financial position.

Reason 4 – Carpe Diem (Seize the Day)

When was the last time you heard someone at the end of their life lament that they enjoyed life too much? Never! It’s always the opposite.

Don’t sacrifice life today with a “someday” attitude. Take that trip to Europe! Buy that cottage on the beach! Pack up the family for a relaxing stay in the Colorado mountains!

Whatever you have been putting off for the future, maybe the future is now!

Reason 5 – Re-Align Your Goals

A common role in the world of owner-financing is that of the unintentional note holder.

It’s quite possible that you never really wanted to offer financing on your home, but market conditions or other circumstances simply made a conventional cash sale impossible.

Years have gone by and you realize that you’re not really having fun being the bank anymore.

We get it. Things change and life happens. If your goals for the future don’t include holding an owner-financed note, then make the move now and trade it in for a lump sum of cash!

There are so many valid reasons to sell your mortgage note or trust deed today. Don’t hesitate to contact us for a free, no-obligation note appraisal. You might just be surprised at what your note is worth.

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