Receiving payments on a mortgage note? Wondering how much it’s worth?
The value of a note or contract is affected by a few factors, including:
- Down Payment
- Terms of the Note
- Buyer’s Credit Rating
- Payment History
- Type of Property Sold and Its Location
- Current Property Value
Each transaction is unique – which is why we offer a free note analysis service based on each unique situation.
It makes knowing your note’s value fast and easy.
Step 1 – Gather Copies of Documents
Documents needed in the quoting process are:
- Promissory Note
The Promissory Note is what your borrower signed listing the terms of the loan. It’s also where they promise to repay.
- Mortgage, Deed of Trust, Land Contract, Real Estate Contract
Some states are “Mortgage States,” others are “Trust Deed” states, and in other cases, a “Land Contract” or “Contract For Deed” will be used. Whatever type used in your transaction, this is the document that pledges the property you sold as loan collateral.
- Settlement Statement
When a property’s sold, a statement is created listing the sale terms – including selling price, down payment, date of sale, and other information. Often it will be titled a “HUD-1,” or a “Closing Disclosure.”
- Payment Records
In a perfect world, you utilize a loan servicer or other 3rd party to collect and distribute payments. If so, they can easily generate a report showing the date and amount of each payment received from your borrower. If you collect payments, throughness and completeness are important.
Hopefully, copies are easily accessible with the originals located in a safe deposit box or other secure location.
When requesting an analysis from Porch Swing Funding, you’re never obligated to sell your payments. If later you do decide to sell, we’ll ask for a few additional documents and the appropriate originals at closing. But for now, to learn how much your note is worth – only copies are needed.
Step 2 – Complete the Quote Request Worksheet
The Quote Request Worksheet, also known as a Mortgage Submission Worksheet, is a simple single-page form. This worksheet summarizes the transaction with most of the information obtained from the document copies. It includes details on the property type, buyer, repayment terms, and current balance. (Please visit the Quote Request and Free Note Analysis page to print a PDF version of the worksheet, or to submit online).
Some noteholders we work with aren’t “form people.” If so, not to worry! Just give us a call. We’re more than happy to work with you however you’d prefer.
Our goal is to make knowing how much your note is worth as fast and easy as possible.
Step 3 – Send for Review
The final step is to submit the worksheet and the document copies to us for your analysis.
Because details are important, you may hear from us shortly to confirm the information you sent or ask follow-up questions.
After that, you’ll receive your analysis. If your note is eligible for purchase, we’ll also include a quote.
Quotes are generally valid for 30 days subject to due diligence – including title review, property appraisal, insurance verification, buyer credit check, and other underwriting items.
The more information we have upfront, the fewer “subject to” items your quote will include.