Owner Carry Financing - How Do I Sell My Mortgage Note

Locate A Reputable Note Buyer

Most outside of the real estate industry would be surprised at just how many owner carried mortgages are in place throughout the United States. Even more so since lending institutions have for the most part cut-off just about anyone with less than perfect credit.
Individuals are now more frequently, in essence, becoming the “bank” to many home buyers. Either out of necessity or to simply increase market interest in their property, offering owner will carry finance increases the odds of receiving a return on their investments.

But what about the mortgage note holder that is considering freeing up the cash he has tied up in the owner carry mortgage? He may be asking himself, “How do I sell my mortgage note?” Fortunately for the mortgage note holder, there is an entire industry devoted to buying and selling paper transactions called cash flow notes. Note investors buy various kinds of notes including owner carried financing notes just like the one held by the mortgage note holder. Interestingly enough, the transaction can be structured just about any way the mortgage note seller chooses. He can sell the entire mortgage to a note buyer or he can sell a selected number of monthly notes in exchange for a lump sum cash payment.

All cash flow notes deals are different depending primarily on the reason why the mortgage note holder wants to sell in the first place. Reasons vary from they want to make investments elsewhere and need to free up the cash, or maybe they have just tired of collecting monthly payments from the buyer or an emergency situation has created a need for immediate cash. Whatever the case may be, the mortgage note holder has flexibility in determining in which way he needs to structure the sale of the mortgage note.

Once you have determined you do in fact want to sell your mortgage note either in full or partially, you need to first locate a reputable note buyer. Knowledge, reputation and experience are the three key factors when seeking out a note broker before selling your mortgage note. A knowledgeable note broker will explain the entire process from how much you can expect to receive for your note, the necessary paperwork and closing. All that will be involved in the transaction can be handled professionally by a seasoned note broker.

Of course, when you first begin considering how to sell my mortgage note, the most important question to be answered is how much can I get for the owner carried note? This is where it becomes necessary to make sure you are dealing with a seasoned note buyer. All seller financed mortgages are different. You may have a personal relationship with the people you have financed residing in the house. However, on paper, they may be a higher risk than normal for the note buyer. Before the note buyer makes you an offer for your mortgage note, he must consider many factors including the risk involved.

Creditworthiness, age of the note, how many mortgage payments have been paid on time as well as late, appraisals, etc. Many factors go into the equation before the note buyer can make an offer. He is will be offering you a lump sum payout for the mortgage note at a discount. It may sound as if finding out how much can expect to receive for your mortgage note is difficult. An estimate can often be obtained within a day or so once you have provided the necessary information for the note buyer to make an informed evaluation.

Selling your mortgage note is not difficult but can be a bit overwhelming if you begin the process without doing some research and gaining a working knowledge of how the paper business works. Transactions are bought and sold within the cash flow notes industry everyday and not just real estate transactions. Odds are the note buyer you will be dealing with has experience in buying and selling many different kinds of notes including structured settlements, lottery winnings, insurance lawsuit settlements, land contracts and even maybe accounts receivables from small businesses. The key to obtaining the best price for your note is dealing with a professional note buyer that has the knowledge to get you the best price you can possibly get for your owner carried mortgage note.