Why would I Seller Finance my home in the first place?
Seller financing is on the rise with more home sellers agreeing to accept payments from buyers directly without involving a bank. Home buyers are having a difficult time qualifying for traditional loans, and there is not much flexibility when it comes to working with the banks.
However, when you Seller Finance, you can structure a deal with the home buyer that works for both parties!
There are some of the reasons people agree to create a note, deed of trust, mortgage or contract including:
- Quicker sale of the property
- Monthly income from the note
- No hassles of bank financing (fees, delays, and strict underwriting)
- More qualified buyers
Why would I sell my mortgage note?
Circumstances change and many sellers would prefer cash today rather than small payments coming in each month. These are a few reasons why people have sold their note payments for a lump sum cash:
- Retirement Plans
- Other Investment Opportunity
- Expensive Medical Care
- Vacations
- College Tuition
- Unexpected Financial Changes
- Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose
- Accounting headaches, IRS regulations, paperwork hassles
- and the list goes on…
What is a note appraisal or quote?
A note appraisal reflects the current market value of your Note, similar to what a real estate appraisal provides for real property. It shows what your future payments are worth in cash dollars today and is sometimes referred to as a “note analysis” or “quote”.
We recommend that you have your note evaluated once a year as pricing may change based on market conditions.
How can I improve the value of my note?
Many of the items that affect the value of your note were determined at the time the property was sold, such as buyers’ credit score, amount of down payment, interest rate, and the structure of the deal.
However, there are three things that you can do now to make your note more valuable:
- use a Servicer to keep good records and copies of the payments received
- obtain a copy of the property insurance policy from the buyer each year
- verify the property taxes are paid when they come due
This will help maintain the value of your asset and help increase the value of the Note if you decide to sell it.
Can I sell only part of my note?
We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.
Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always be clear about your REASON to sell the note and we will help structure the best deal to meets your needs.
How is the value of a note determined?
The value of a note is affected by the down payment, interest rate, monthly payment amount, term, the buyer’s credit rating and payment history. The type, condition, and value of the property also impacts the value of your note.
The time value of money, which makes payments due now more valuable than payments due in 20 to 30 years, also plays a role in the evaluation process. Generally, due to inflation, the money in your pocket today is worth more now than later. All these elements will be taken into consideration in determining the current value of your note.
How will selling my note affect the payer?
The payer experiences no change in the way the payments are structured. The only change will be the address where the payments are mailed.
How do I get started?
The first step is to obtain a quote using our online form or by calling us at 385-444-5672. We will be requesting copies of the documents relating to your transaction:
- Note and Mortgage (Deed of Trust or Contract)
- Closing statement
- Buyer information
- Pay history and current balance
- Previous title insurance policy
- Current hazard insurance policy
We will then provide you with an offer subject to the standard title, appraisal, and buyer’s credit review. Once under contract, you will receive your cash as soon as all the documentation can be obtained. This typically takes as little as 10-15 working days.
How do I get paid if I decide to sell my note?
The purchase price is paid in guaranteed funds (cashier’s check or wire transfer) upon receipt of the final transfer package and original documents.
We are happy to wire funds to the title company so you may exchange your original documents for the proceeds, assuring the safe and secure transfer of your asset.
Why work with Honest Note Buyer LLC?
We pride ourselves on:
- Quick closings
- Excellent customer service
- Competitive quotes
- Providing customized options
- Strong financial backing
- Flexibility on all note purchases
- Confidentiality with all transactions
- Credibility in the industry
At Honest Note Buyer LLC we provide top-rate service combined with the best prices available.
Contact us if we can assist you!
We also invite you to visit our learning center filled with helpful articles and tips for creating and selling trust deeds, land contracts, and mortgage notes.