Frequently Asked Questions
Have you
sold real estate and owner financed (Seller Carry-Back or Privately Held
Mortgage)?
- And are you
receiving payments on that Mortgage that you sold?
- Did you know that
it is possible for you to sell the Note for cash today?
- Many banks and
credit companies do this all the time. They loan money to an
individual to purchase a home and then sell the note to an investor
or another bank. This is done every day of the week throughout the
year. You have probably experienced this on a mortgage that you were
paying on. After a few months or years of payments you get a notice
that your mortgage was sold to someone and you should now send your
monthly payment to them. All the conditions on your original note
stay the same, except to whom you now make payments to. Your
original note is still the binding document that secures the real
estate. The reasons why financial institutes are doing this can be
various. One of the most common reasons is to allow the seller, (in
this case the bank), to obtain cash to reinvest in the loaning of
money. They make a small profit on each loan, and process a large
number of them. This translates into large profits for the bank.
They also make money on the loan origination, which they get a
percentage of the loan amount for doing the paper work Banks and
other organizations purchase only large packages of Mortgages. A
good example of this is insurance companies. They buy large blocks
of Mortgages from banks and other lending Institutions, and very
rarely deal with privately held mortgages. They believe their time
is better spent working with large blocks of notes than doing
business with individuals. There is no place for the owner of a
Privately Held Mortgage to go to sell their note. We fill this void
in the banking community and allow an individual like yourself the
opportunity to sell their note. We purchase full and partial notes.
- How
do I get started in selling my mortgage?
The first step is to get a free Quote on your Mortgage. Call us at
317-534-0585, or check out our
Online Note Submission Sheet
- What
information is required to get a free Quote?
We need Information on the note holder, property, mortgage or trust
deed, etc. Take a look at the Mortgage Worksheet.
- How long
does it take to receive my Quote?
After receiving the information needed, usually within 48 hours.
- What do I
do next?
Review your Quote, once you have accepted it, we will then start our
due diligence (appraisal of property, title examination)
- How much
money can I get for my Mortgage?
The amount of money you will receive depends on many factors. They
include:: The type of property The interest rate The length of time
you have been receiving payments The credit worthiness of the payer
The location of the property The loan to value of the property We
consider all of these things as we evaluate your mortgage and
compute your quote.
- If I am
holding a Mortgage with a balance of $50,000, will you pay me the
entire $50,000?
The amount paid will normally be less than the current balance. The
amount depends on the interest rate you charged the buyer, the term
of the mortgage, current prime rate, value of the property, loan to
value, as well as other factors.
- Why are
Mortgages discounted?
Money received today is worth more than money due in the future.
When a seller wishes to obtain a cash payoff, the mortgage must be
discounted to make the yield attractive to an investor to purchase.
- Can I sell
just part of the Mortgage?
You can sell the whole mortgage or just a certain number of
payments. We can tailor the purchase to whatever your needs may be.
- Will there
be any "OUT OF POCKET COSTS" to me.
It will cost you absolutely nothing. You do not pay any fees,
commissions, points, or any charges. We do the work and pay the cost
required to complete the transaction. What we quote to you is what
you walk away with at closing.
- How long
will it take for me to receive my money?
We make every effort to close within two weeks of receiving a signed
agreement although in most cases it will take approximately three to
four weeks, as long as the paper work is correct and no problems
arise.
- How will I
be paid?
Certified Check from a major financial institution.
- My selling
of the Mortgage, will this affect the person making the payments?
It will not affect them at all. The only change will be to whom and
where they will make the payments to. All terms and conditions set
forth in the original note and mortgage remain the same.
- Can this
transaction be accomplished through the mail?
The sale of your Note can be completed quickly, easily, and
confidentially through the mail or in person.
- Will you
buy new Mortgages, or do they have to be seasoned?
Yes, we do buy new Mortgages, if they meet our Loan to Value
requirements. A seasoned Mortgage is when that has been paid on for
some amount of time.
- Do you buy
Mortgages in any state?
Yes.
- Do you buy
Second Mortgages?
Yes, we buy Second Mortgages as long as they meet our Loan to Value
requirements.
- Can I
contact you by phone?
Yes, please do, our number is
317-534-0585.
- Can
I E-mail you?
Yes, scott.pentecost@cash-for-notes.com.
