If you have been wondering how to sell your mortgage note, let me show you the 7 easy steps to cash freedom. The funny thing is, many people do not even know that their real estate notes are possible to sell. But once they realize they can unlock the cash from their promissory note, instead of receiving monthly payments for years on end, they usually reach out to a mortgage note buyer and sell the note.
People sell mortgage notes every day, it is very common and easy to do with the right mortgage note buyer.
Let me show you how easy it is to sell a real estate note in 7 easy steps.
Step #1 – Gather your documents and Request Quote From Sand Dollar Notes
For some people this is the hardest part – trying to remember where they stuffed the promissory note and Settlement Statement! Hopefully, that’s not you. Once you have your documents in hand, along with your amortization (payment) schedule, just complete the Online Note Quote form to receive a free no obligation quote. This can be submitted online or over the phone. We will usually call with follow-up questions.
Step #2 – Provide Document Copies
You will want to make sure you know where the original documents are located, because they will be requested at closing, but copies are fine for the discovery phase. The more accurate the information given at the beginning, the more accurate of a quote we can give. So, in the beginning there are many questions, but it’s all to get you a really good quote of your cash payment.
To get started note buyers like to see copies of these three documents:
Mortgage, Trust Deed, or Contract
Step #3 – Accept Offer & Agreement
We will take a couple of days to review the info you gave us, our assessors will run the numbers and we will make an offer. Sometimes it’s a full cash offer and sometimes its a partial offer. You will have time to review the offer and think it over. Once an offer is accepted it will be outlined in a written agreement. In addition to stating the price, the agreement will specify conditions of closing. We pay the closing costs!
Step #4 – Note Buyer Review
Sand Dollar Notes will perform a detailed review of the transaction, known as due diligence. This includes a review of the buyer’s credit, current tax and insurance status, possible payer interview, and other important items. We may also request copies of additional documents including a payment history, insurance policy, and existing title report.
Step #5 – Appraisal
We will order an evaluation of the current property value. This usually takes the form of a BPO or drive-by appraisal. We wants to be sure the property value is still equal to or greater than the sales price. If the value comes in low, the note investor may present a revised offer for consideration.
Step #6 – Title Search
The title search verifies ownership of the property and the mortgage note. It saves time and money to work with any title report that might exist from the original sale date. If the title search shows money is still owed on a prior mortgage it will usually be paid from proceeds. Title defects may cause a revised offer for consideration.
Step #7 – Closing
When all steps are complete Sand Dollar Notes will send the final closing documents for signature. The title company is often used to handle the exchange of money for the original note and transfer documents. Funds are typically paid in the form of a wire transfer or cashier’s check. You are also encouraged to have your attorney review and advise with the closing process.
Selling your mortgage note can be a simple process when you work with an experienced note buyer. Just take a few minutes upfront to gather your information and documents and we will handle the rest for you!