Why Should I Sell My Real Estate Note?
Peace
of Mind! Usually a contract is acquired in lieu of the cash actually desired during a real estate sale. If retained long enough,
many contracts will eventually pay off. However, by selling all or part of a mortgage you will never again have to worry about:
- Collecting the payments on the note
- Default or Foreclosure by the payor
- Destruction or
devaluation of the property.
- All Tax reporting requirements by the government.
- Bankruptcy or loss of income of the payor.
- Abandonment of the property.
- Deficiency judgments
against the payor.
- IRS tax liens/other liens against the payor.
- Assumption of your note by another payor.
What Are Some Common Reasons People Sell Their Notes?
- To pay off debts which have a higher interest rate.
- To
pay unexpected debts like hospital bills.
- To pay for tuition,
go on a vacation, or purchase a new vehicle.
- To relieve bookkeeping
and collection burdens.
- To make a more profitable investment.
- To receive cash now instead of collecting it in small monthly payments over time.
- Did not want to carry the note in the first place.
What Is My Note Worth?
The value of what a note is worth depends on several factors including
type and location of the property, appraisal and title of the property, how the note was originally structured as well as
the credit score of the property buyer. These and many other factors will effect a notes value.
How Long Will It Take To Receive Funds?
Once we have received all the needed documentation
and information, it usually takes only 15-20 working days to process and record the documentation to complete the
sale & get your cash.
Will Selling My Note Have
An Effect On The Person Paying Me?
No. All terms and conditions set forth in the original note and mortgage
stay in place. Only to whom and where future payments are sent will change. All notifications to the person paying that note
will be taken care of by us.
Can I Sell A Portion Of My Note?
Yes. You may choose to only
sell a potion of your note. We call this a partial purchase. In some cases you may require only a specific amount of cash
to make a purchase, cover the cost of an emergency, etc. In that case you might choose to sell only a few years of the payments
to receive the specific amount needed.
Will I Need To Attend The Closing?
Not necessarily.
We can close the transaction by sending you a closing package by overnight delivery along with easy to follow instructions.
What Is Required For A Free Analysis Of My Note?
Basic information
that is easily obtained from the closing documents and note. Call or email us to find out more.
What documentation do I need to Sell My Note?
EDH Funding will keep you updated throughout the entire selling process to ensure a smooth transaction. In order to get
you the highest dollar amount for your note in the shortest amount of time, we will need to have copies of the following documents
available to review. These documents can be provided either by the note seller, the note seller’s attorney, or
the real estate agent from the sale of the subject property. The documents are as follows:
- Copy of Note.
- Copy of Trust Deed,
Mortgage or Land Contract.
- Escrow instructions from real estate sale in which the
"Contract" was created.
- Escrow closing statement from real estate sale
in which the "Contract" was created.
- Title insurance policy which insures
the "Contract".
- Insurance information on the property which includes
(Insurance Company, Policy Number, Agent's Name and Address).
- Loan Payment
Record (if available).
- Appraisal from the time of sale or thereafter (if available).
- Please provide two (2) pictures of subject property.
- Surveys
of property or other documents in your possession (if available).
What
is does the Process of Selling my Note involve?
- Step 1 -
After the above information regarding the seller's note has been received and verified, we will be able to offer the seller
a “soft bid” for the note.
- Step 2 - If this amount
is agreed upon by the note seller, we will then verify all the information, such as but not limited to: the property value,
the credit score, loan amount, clear title and so forth. If, however, any of the information is inaccurate the offer
amount is subject to change or may even be withdrawn.
- Step 3 - After
all information is verified, we will offer a “firm bid” amount and the underwriting process will start. After
verification the note seller should expect to receive a check within 2 - 3 weeks or less. The entire note sale from start
to finish, should take no more than 4 weeks.
