Converting Your Mortgage Notes For Sale To Cash

2007-03-08 10:33:40

( Financial )



The purchase of a piece of real estate property may be paid in one lump sum, or through installments. When an installment scheme is used, the seller issues a mortgage or real estate note. Mortgage notes also known as real estate notes, outline the payment scheme of a property that is purchased. An initial down payment is paid to the seller, and the balance settled in through an agreed mode of payment in monthly installments.

Mortgage notes can be sold to real estate note buyers in exchange for cash. This is beneficial for individuals in dire need of cash. In addition, some people decide to put up certain mortgage notes for sale when the value of the property goes down.

There are usually a number of schemes that are available for individuals wanting to sell mortgage notes. You can opt to sell all of the future payments of your buyer in exchange for a one time cash payment. Alternatively, you can sell a certain number of months’ worth of future payments in exchange for cash. Lastly, you can also sell only part of a specific amount that is paid to you by your buyer each month.

When you choose to sell your mortgage notes you should also be prepared to pay for transaction fees, escrow fees, tax certificates and appraisal fees. These fees are sometimes split between the note buyer and the mortgage note seller.

There are certain documents that will need to be presented to the real estate note buyer before your cash is released. Some of these documents include: a sketch map of the property, photos of the property, escrow agreement, payment records and copy of a signed promissory note if applicable. Other documents will most likely be requested, so it is best to get these details from your real estate note buyer.

Mortgage notes for sale are applicable for contracts on your land, trust deeds and promissory notes. Most mortgage note buyers will purchase mortgage notes for houses, condominiums, townhouses, commercial buildings, land and mobile homes.

Companies that purchase mortgage notes for sale can be found on the Internet under real estate note buyers or note buyers. Note buyers can also be found advertised on newspapers and magazines.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.