Q. Why sell my real estate note?
A. Usually real estate notes are acquired in lieu of an all cash sale, often, because it’s the only way to close a real estate sale. If retained long enough, many notes will eventually pay off in full. However, by selling all or part of a mortgage today, you will never again have to worry about:
- Collecting the payments
- Default and Foreclosure
- Destruction/devaluation of the property
- Federal Income Tax reporting requirements
- Bankruptcy of the payor
- Divorce or death of the payor
- Abandonment of the property
- Deficiency judgments
- IRS tax liens/other liens against the payor
- Assumption of your note by another payor
Q. Why Sell My Note?
A. Our note sellers have given us many reasons over the years as to why they have sold their notes, including:
- To obtain a lump sum cash settlement
- To pay off debts with a higher interest rate
- To pay unexpected debts such as hospital bills
- To pay for tuition, vacations, or a new car
- To settle an estate or divorce
- Tired of collecting small monthly payments
Q. What Is My Note Worth?
A. The value of your note is established by a several factors, including:
- Type of property
- Location of property
- Structure of the note and mortgage
- Credit of the payor
- Priority position of the note
- Interest rate of the note
Q. Can I Sell A Portion Of My Note?
A. Yes. This is called a partial purchase. Oftentimes, note owners would like to sell only a few years of the note. This is possible through a partial note sale.
