We make it easy to learn your options. Here’s how to sell a mortgage note (or trust deed, land contract or contract for deed) in 7 easy steps:
Step #1 – Request a Quote
Call, fax, email or complete our online form. We’ll need information about the sale of the property, the terms of the note (aka loan), and your borrower.
Step #2 – Provide Copies of Documents
To get started we’ll need copies of these documents:
- Promissory Note
- Mortgage, Trust Deed, Land Contract or Contract For Deed
- Settlement Statement
Although we work with copies at this point, it’s important to know where the originals are – especially the Promissory Note. We’ll need originals at closing.
Step #3 – Accept Offer & Sign Agreement
Assuming we’re able to purchase your note, we’ll present an offer verbally – giving you an opportunity to ask initial questions. Then we’ll follow up with a written agreement. In addition to stating the price, the agreement will specify conditions of closing and who pays costs.
Step #4 – Buyer Review
Next, we’ll perform a detailed review process known as due diligence.
This information gathering and review is always required when you sell a mortgage note, deed of trust, etc. It includes checking the borrower’s credit, current property tax and insurance status, payer interview, and other important items.
We also request copies of additional documents such as the payment history, insurance policy, and existing title report.
Step #5 – Appraisal
We’ll order an evaluation of the current property value – usually a Broker’s Price Opinion (BPO) or Drive-by Appraisal. This is to be sure the property value is still equal to or greater than the sales price. If the value comes in low, we may present a revised offer for consideration.
Step #6 – Title Search
A title search verifies ownership of the property and the note. It also identifies additional liens that may exist. If the title search shows money is still owed on a prior mortgage or other lien, it may be paid from note purchase proceeds.
Step #7 – Closing
Now it’s time to sell your mortgage note. When the above steps are complete we’ll send the final closing documents for signature. A title company or other 3rd party 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 encouraged to have your attorney review and advise with the closing process.
We are Here to Help You Sell Your Note
Selling your mortgage note can be a simple process when you work with an experienced note buyer. Just take a few minutes to gather your information and documents. We’ll answer questions and handle the rest.