Real Estate Blog Marketing

A lot of private note holders don’t really know the different options they have with their Mortgage Note or Trust Deed. As there are a lot of questions about the process of selling a mortgage note or selling a trust deed, here is a list of popular FAQs that might be of benefit.

Below are frequently asked questions about selling private notes, along with some answers that can help you make an informed decision about selling yours:

1. Why would I want to sell my note?

The two biggest benefits of selling a private note are:

• Accessing the cash now for critical investments or unexpected expenses.
• Ridding you of bookkeeping tasks, keeping track of borrower's payments, etc.

2. Is it possible to sell a portion of my mortgage note?

Yes, partial purchases are performed all the time.

3. Can you tell me the criteria for how much I will be paid for my private note?

There are five key factors a Mortgage Buyer looks at. They are:

1. The amount of equity in the home
2. How long the borrower has been paying on the note
3. The rate of interest on the note
4. The time remaining on the mortgage
5. The creditworthiness of the mortgagor

4. Will an appraisal be performed for you to buy my private mortgage?

Yes, to determine the loan to value of the security. Sometimes, depending on the real estate market, a Real Estate Broker's opinion will be OK.

5. Will it be necessary to pull the home buyer’s credit?

Yes, it is a key factor in determining the lump sum payment for your private mortgage note.

6. Do I have to tell the borrower I’m selling the mortgage?

Yes. That is the law.

7. How do I know if the mortgage note or deed of trust has a clause allowing me to sell my note?

Just look at the original note, but most notes allow for the sale of the note. It’s standard in most private mortgage agreements.

8. Can I sell deed of trust just like a private mortgage?

Yes, they are all treated the same.

9. I wish to sell my note payments for some cash but I am afraid of losing all the monthly income?

Not to worry. Some mortgage buyers can make a partial purchase of your private mortgage for only the amount you are looking for.

10. Is there a minimum mortgage size note buyers will consider?

A common limit is $30,000.

Finally, do not make the assumption you can’t get the cash you want from the sale of your mortgage or trust deed. There are a number of ways to structure a mortgage sale so as to accomplish your goals. The key, however is to tell the mortgage buyer exactly what your desires are. That way they can structure the mortgage note purchase to fit your needs exactly.