Regretting Providing Your Home Buyer A Private Mortgage? 2 Ways To Get Cash Out Of Your Mortgage Note

Did you put your house on the market and find a great buyer that wanted you to provide private financing that sounded great at the time, but has since turned into a headache to manage? If you have a mortgage note and are tired of having to hassle the new owner of your home to get your monthly payment or just need a large sum of cash to cover a financial emergency that came up, then the great news is that you have several ways to get cash out of that mortgage note. Read on to find out what your options are and the advantages of each.

1. Sell Your Entire Mortgage Note For A Lump Sum

While there are other ways to get cash out of your mortgage note, selling the entire note is the best option if you are simply tired of collecting monthly payments from the person who bought your home. To sell your entire mortgage note, all you have to do is connect with a mortgage note buyer like Nine Tails Inc. and provide them with the information they need about your note, the home you sold, and the buyer of the home.

While the mortgage note buyer will tell you exactly what information they need, it is a good idea to gather the following before you contact the buyer:

Your mortgage note. They may ask you for information on the note itself, so have it on hand.
Receipts for all payments already made by the buyer. Add them up to determine your buyer's current equity and count them to determine how many months your buyer has been paying you. The longer your buyer has been making payments, the more "seasoned" your note is. A seasoned note shows that your buyer is dependable.
The buyer's full name. While it is okay if your home buyer doesn't have perfect credit, your note buyer may consider the buyer's credit when determining how risky it is for them to purchase your note.
Property information. Your old home "for sale" listing is a great place to find information about the home you sold that the note buyer will need. They will likely ask you about the square footage, number of bedrooms, and other information that you would provide a typical home buyer.

Did you just sell your home and haven't yet received monthly payments from your buyer? That is okay, because many mortgage note buyers will purchase unseasoned notes. Once you gather all of the information the note buyer will need, go ahead and give them a call or send an email to get a private mortgage note quote. Since the note buyer will always be at risk of your buyer defaulting, you will likely receive just a bit less than the value of the note due to the ever-present risk of taking on a mortgage note.

2. Sell Just A Portion Of The Mortgage Note

If you enjoy looking forward to a monthly payment from your home buyer, but just need a sum of cash for an emergency or even to take that vacation of your dreams, you can find a mortgage note buyer who will purchase just part of your mortgage note value.

Your mortgage note buyer will need the same information they would if they were buying the entire note, so be sure to have it ready when you contact them.

What happens after you sell part of your mortgage note? Your note buyer and you will come to an agreement about how they will be paid for their equity in the note. There are many options, including the following:

If your note buyer purchases half of the current value of the note, then they may request that you or your buyer send them a certain percentage of every monthly payment until the remainder of the note is paid in full.
If you prefer, you can offer to collect payment in full from your home buyer every month and then send the note buyer their portion of the payments as a lump sum twice a year or on another mutually-agreed-upon timeline.

Remember that many mortgage note buyers invest in many notes at any one time, so each may have their preference as to what type of payment plan works best for them and their schedule. However, the two of you can decide on a plan that works well for both of you, and, most importantly, that allows you to have the immediate cash you need after selling a portion of your mortgage note.

If you are tired of collecting monthly payments for that private mortgage you offered the buyer of your home or if you just want or need a lump sum of cash right now while still holding onto most of your mortgage note, then you can get cash now by contacting a mortgage note buyer and selling all or part of your mortgage note.

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