What to Know Before Selling Your Mortgage Note
Are you considering selling your mortgage note? If you sell your note at the right time, you can make a great return on your investment. A mortgage note is a legal document secured by a mortgage loan, in which the borrower promises to pay back a specified amount plus interest over a designated period of time. As the note holder, you act as the bank and collect payments from the borrower on a monthly basis.
Rather than acting as the bank, you can sell your mortgage note to a reputable mortgage note buying firm and receive an ample return on your investment. You’ll no longer have to deal with the annual hassles of IRS reporting or collecting payments, and you won’t need to worry whether the buyer will make payments on time or go into foreclosure.
The money you receive from your mortgage note can be invested elsewhere, or used to purchase a new car, remodel your home or pay off existing debt. Other common reasons note holders choose to sell is for real estate or stocks, to fund college tuition, or to settle an estate or divorce.
Regardless of why you want to sell you mortgage note, the amount you receive for selling your note will be determined by a variety of factors. Items that will be considered are the note’s current balance and interest rates; the borrower’s credit history and ability to make payments; the payback period; and the type and value of the property that is secured by the note. All of these factors will determine whether your note is salable.
It’s also beneficial to sell your note while the housing market is doing well. By waiting to sell your mortgage note, the market may decelerate. If you sell your note while the housing market is poor, you may over-price your note and not get a sufficient return on your investment.
To learn more about selling your mortgage note, contact Amerinote Xchange. We are an experienced and trusted note buyer that has been buying mortgage and business notes for over a decade. Visit us online or contact us by calling 1-800-698-3650.