Selling your mortgage note payments for a lump sum can happen quickly, and it helps to know what obstacles you may face. So we’ve assembled the questions we’ve seen in the two decades we’ve spent in the note-buying industry.
If you have questions we didn’t answer here, feel free to contact us.
Will the mortgage be changed during or after the sale of the note?
No, terms of the mortgage will not change with the sale of the note. Both traditional bank-owned mortgages and private mortgages are often sold or their servicing rights transferred. Everything remains the same for the payer, who simply pays someone new after a sale.
Will the payer on the note be affected during the sale?
While you’re going through the process of selling your mortgage note, the payer living on the property will not be disturbed or notified. The appraisal process is typically handled by a drive-by and not an on-site inspection.
Once the sale is finalized, the new owner of the mortgage will introduce himself in writing to the payer and tell where to send future payments.
What are the tax consequences of selling a mortgage note?
As with any significant gain of money, you may be liable for taxes on that amount. The amount above the cost basis when you sell your note could be subject to capital gains treatment by the IRS. Anytime you’re dealing with a large influx of money, seek the advice of an attorney or CPA to ensure you have no surprises during tax time.
What types of notes can be sold?
Mortgage notes go by many names. Currently our partner buys:
- Mortgage Notes
- Seller Financed Mortgage Notes
- Commercial Property Notes
- Real Estate Notes
- Contracts for Deed
- Land Contracts
- Balloon Notes
- Interest Only Notes
- Performing Notes
If you’re not sure your type of note is eligible to be sold, give us a call. We will look at any type of note you have to see whether a deal can be made, all at no cost to you.
How do mortgage note buyers determine the offer amount?
How much your mortgage note is worth depends on how likely the payer is to continue to make payments. A less-risky note is worth more than a higher-risk note.
These factors can increase the amount your note is worth:
- Rising value of the property
- The buyer having a substantial amount of equity in the property
- The buyer having an above-average credit score
How do I know whether I can sell my note?
Most notes are deemed saleable if they have at least one of the following characteristics:
- Significant buyer equity
- Good payment history
- Payer has a good credit score
The best way to know whether you can sell your note is by calling one of our representatives for a free, no-obligation quote.
How long does selling a mortgage note take?
The average sale takes two weeks to a month, depending on the complexity of the deal and what happens during the appraisal process. After that, the money is wired into your account the same or next business day. (When the funds are available may depend on your financial institution.)
Do I have to sell the entire note?
No, mortgage note owners have the option of selling only a portion of the mortgage note. In the event of a partial sale, a loan servicing company receives the payment from the payer. The servicing company then divides the money between the mortgage note purchasing company and the original note owner.
I’m a payer on a private mortgage; how do I find out who holds my mortgage?
When a mortgage note changes hands, the new owner is required to inform the mortgage payer. If you’re a payer on a mortgage working through a loan servicer, you can send a written request to the servicer for information on your mortgage note owner. Consumer protection laws require them to provide the name, address and telephone number to the best of their knowledge.
Why should I choose MortgageNote.org?
We are experts in our field, ready to get you your money quickly and professionally. The entire sale is handled with discretion, with little stress on you or your property owner.
We know that you have several options. But we’re so confident you’ll enjoy working with us that we’re willing to match any competitor’s written offer.