How to Sell Your Mortgage Note
By Want freedom from collecting payments for the next 10, 20, or even 30 years?
Prefer 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 a Quote
– Just complete a short informational worksheet to receive a free no obligation quote. This can be submitted online, by fax, 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 Broker’s Price Opinion (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.
We are Here to Help!
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 we will handle the rest for you!
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