Selling My Mortgage Notes - How To Get Top Dollar For Your Note
Many people want to know to know how to go about: selling my mortgage note.
There are many considerations.
But, first, what must be clarified is if you actually have a mortgage note.
This may seem strange, but many people misunderstand the process of selling mortgage notes.
Perhaps the biggest mistake people make is to contact a note buyer when they don't even yet have a note! In other words, people who have a home or piece of property to sell will contact a note buyer to actually buy the property and relieve them of their mortgage payments.
This is not what a note buyer does.
A note buyer will consider buying your note if you are selling mortgage notes only if you have actually created a note.
Let's take an example to clarify.
Let's say you have a house.
You decide to sell it on land contract or other creative seller financing method.
You find a buyer who moves in the home.
There is no bank involved because, in essence, you became the bank by carrying the note.
So, you create a note between you and the buyer.
This note is structured so that the person making payments on the note (the person buying the home) is making payments directly to you.
In this situation you are holding a note that you can sell to a note buyer.
The Key To Selling My Mortgage Note Assuming you are selling mortgage note, there are some factors you should know.
First, a note buyer is going to want a discount on your note to buy it because there must be a potential profit in it for them.
The extent of the discount will depend on numerous factors.
First, if the person making payments on the note has poor credit, then there is a higher risk of default.
Since the note buyer assumes the risk of note payment default after purchasing it from you, they will need a steeper discount to buy your note.
Conversely, if your note has generated a steady history of payments and the payor on the note has a low risk of defaulting, you can get more for your note.
Also, the discount required from a note buyer if you are interested in selling mortgage notes must take into account inflation.
One fact of life is that money today is always worth more than money tomorrow for the simple reason that the purchasing power of money goes down over time.
For example, just remember what you could buy with 10 dollars 20 years ago.
10 dollars today just doesn't buy you as much as it did 20 years ago because of inflation.
Because you are selling mortgage notes that receive payments over time (usually years) and the note buyer will pay you immediately when your note is closed on, the note buyer is actually receiving payments that will be worth less over time due to inflation.
There are many other factors to consider, but if you are truly serious about selling my mortgage notes then you should contact a note buyer for a free, no hassle quote over the phone.
There are many considerations.
But, first, what must be clarified is if you actually have a mortgage note.
This may seem strange, but many people misunderstand the process of selling mortgage notes.
Perhaps the biggest mistake people make is to contact a note buyer when they don't even yet have a note! In other words, people who have a home or piece of property to sell will contact a note buyer to actually buy the property and relieve them of their mortgage payments.
This is not what a note buyer does.
A note buyer will consider buying your note if you are selling mortgage notes only if you have actually created a note.
Let's take an example to clarify.
Let's say you have a house.
You decide to sell it on land contract or other creative seller financing method.
You find a buyer who moves in the home.
There is no bank involved because, in essence, you became the bank by carrying the note.
So, you create a note between you and the buyer.
This note is structured so that the person making payments on the note (the person buying the home) is making payments directly to you.
In this situation you are holding a note that you can sell to a note buyer.
The Key To Selling My Mortgage Note Assuming you are selling mortgage note, there are some factors you should know.
First, a note buyer is going to want a discount on your note to buy it because there must be a potential profit in it for them.
The extent of the discount will depend on numerous factors.
First, if the person making payments on the note has poor credit, then there is a higher risk of default.
Since the note buyer assumes the risk of note payment default after purchasing it from you, they will need a steeper discount to buy your note.
Conversely, if your note has generated a steady history of payments and the payor on the note has a low risk of defaulting, you can get more for your note.
Also, the discount required from a note buyer if you are interested in selling mortgage notes must take into account inflation.
One fact of life is that money today is always worth more than money tomorrow for the simple reason that the purchasing power of money goes down over time.
For example, just remember what you could buy with 10 dollars 20 years ago.
10 dollars today just doesn't buy you as much as it did 20 years ago because of inflation.
Because you are selling mortgage notes that receive payments over time (usually years) and the note buyer will pay you immediately when your note is closed on, the note buyer is actually receiving payments that will be worth less over time due to inflation.
There are many other factors to consider, but if you are truly serious about selling my mortgage notes then you should contact a note buyer for a free, no hassle quote over the phone.
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