Get Cash For Your Mortgage Note

03/27/2019

Reason 8 To Sell Us Your Note

Paying Annual Property Taxes

Regarding taxes, you can determine if the taxes are current by calling the county office where the property is located. We recommend doing this on an annual basis. The Borrower’s failure to keep current on taxes is a breach of contract and an indication he ore she may not be able to afford the property, even if the monthly payments are current. There is nothing more discouraging than foreclosing on a property only to discover that the first expense you have is several thousand dollars of unpaid back taxes. Paying taxes at the end of the year can be very expensive for most home owners due to the fact that most homeowners like to travel and enjoy the holidays during that time of the year. If you don’t keep track of this, we can guarantee that real estate investors are lurking and spying on your property and they can swoop in and purchase the property right from under the buyer, and now you will be dealing with a new owner that is trying to either wholesale, flip, or rent out the property. This can get real messy especially when all these new names are popping up and you do not know who is living in the property.

We buy mortgage notes for cash. Get a lump sum cash payoff for your mortgage note instead of collecting payments.

03/27/2019

Reason 7 To Sell Us Your Note

Dealing with Property Maintenance

BORROWER’S DUTIES TO MAINTAIN PREMISES:
Every now and then… you need to drive by the property you sold, but if you have moved out of state and become an absentee owner, have someone you know to do this for you. You don’t want to to be a note holder of a run down property. Low or no maintenance on the property can seriously diminish the value of your loan and might cause slow payments from the borrower. Even in apartment renting, tenants are reluctant to make rent payments when maintenance is not repairing the property if things break down or there is a bug problem. Now on the other hand, if you have improvements to the property, for example (a new roof, new landscaping, new fence, new paint job, new air conditioner heater, etc) the borrowers will most likely make prompt payments. Try to stay from selling handyman specials or fixer uppers. You are basically selling a junker. A happy borrower is a paying borrower.

At the end of the day, most sellers are not willing to rehab the property before selling. Most just sell it as is hoping to get a good paying buyer. This can be costly and can cause headaches.

Another solution is to cash out of the mortgage note or trust deed to an investor and be done with the headaches.

https://webuymortgagenotesforcash.com

03/27/2019

Reason 6 To Sell Us Your Note

How to deal with property insurance.

Regarding seller owner financed mortgage, trust deed, or land contract property insurance, you should…

1 – verify the policy is insured for an amount that represents at
least the full value of the amount still owed to you. (The Borrower should want to insure the property for the FULL value.)

2 – be sure you are listed as the mortgagee, trustee or first contract holder on the policy. This way, you will be entitled to the proceeds from any insurance claim ahead of the Borrower. If you are listed this way on the policy, you should get renewal notices each year from the insurance company. You should also get a notice of cancellation if the Borrower fails to keep the policy current. Finally, if you ever do get a cancellation notice, or for any reason find the property uninsured or under-insured, immediately contact the Borrower regarding this breach and purchase your own coverage until the problem is rectified.

03/27/2019

Reason 5 To Sell Us Your Note

How to Deal With a Balloon Payment

When trying to handle a balloon payment with seller owner financed mortgage notes, trust deeds, or land contracts it is a good idea to notify the Borrower by letter at least four to six months before the balloon is due. This gives the Borrower plenty of time to find a way to finance or otherwise pay that last, large payment. For example, if the balloon payment is $10,000 after 60 payments, and the borrower does not have it, then you will be entering a new situation with the mortgage. You might want to work out a refinance deal with them like a loan modification or worst case scenario…. start the foreclosure process. That is not fun.

03/27/2019

Reason 4 To Sell Us Your Note

Headaches of Dealing With Late or Defaulted Payments

If legal action is required, you the seller have the right to initiate foreclosure proceedings. Your best bet is to find an attorney with experience in the area of real estate foreclosure. Declaring a loan to be in default and starting the foreclosure process is a serious matter and should be handled by an attorney familiar with the laws of the state in which the property is located. The biggest mistake made by Sellers in this area is:
1. Trying to take matters into their own hands
2. Delaying the exercise of their rights.

Begin to think in terms of foreclosure when the Borrower is one month behind, not three or four months. Keep records of all written and spoken conversations with the Borrower, including dates, times, and what was discussed. You’ll never know how or when these records will come in handy until you need them. Because if you don’t have them, it could be too late!

Having a seller owner financed mortgage is a big headache if you have a problem borrower. Cross your fingers that your situation works out for the best. If not, there are alternative solutions and you can get out of it and still come out ahead. You can sell your mortgage note to an investor for cash today while they take over your situation.

03/27/2019

Reason 3 To Sell Us Your Note

How to Deal With Collecting Monthly Payments

For your records, you definetly want to write the Buyer’s phone number or numbers down or email. The Buyer’s contact information is handy to have in case you need to reach him or her on short notice…such as to discuss why their payment is late, or if you would like the next payment sent to a different address.

You always want to have their contact information. After all, they are paying the mortgage on the property you sold them. And vice versa… the buyer needs all your contact information just in case their payment is late or they need to get in contact with you. This is best practice when doing business. Most seller financed note holders like yourself are not big fans of chasing down monthly payments every month or having people calling them with excuses.

When trying to handle monthly payments for seller financed mortgage notes, trust deeds, or land contracts some people have the monthly payments on their loans serviced by a bank, credit union or escrow company. Be advised, however, that banks, credit unions and escrow companies do not assist nor help you in the collection of your payments. This is totally up to YOU on how to set this up. If the Borrower gets behind or defaults with his or her payments, this becomes YOUR problem. The escrow company simply provides a bookkeeping function for your mortgage. If this is way over your head and just too complicated, then we might suggest relinquishing your mortgage note to a mortgage note investor. A mortgage note investor can free you up from these headaches and you can cash out of your mortgage instead of dealing with collecting monthly trust deed or mortgage payments.

03/27/2019

Reason 2 To Sell Us Your Note

Not Understanding Price and Terms of Your Deal.

Amortization schedules can be obtained from banks, real estate offices, and title companies for a small charge. You would want to have this for your records to see exactly how much cash flow you will generate from the entirety of the mortgage note. You might have sold the property for $150,000 and after 20 years of payments with interest, the total payments might come to $250,000 depending on the interest rate and number of monthly payments. You need to be knowledgeable about this when talking to a amortization specialist about your mortgage, trust deed or land contract. You definitely do not want to just throw something together yourself without knowing about amortization schedules. This is not like collecting rent, this is a mortgage. And if you mess things up from the beginning, then you could be losing a lot of money in the end.

03/27/2019

Reason 1 To Sell Us Your Note

You are stuck collecting payments instead of getting all your money.

You finally found someone to buy your house, but their credit was not good enough for them to qualify for a bank loan, so you offer seller financing to them. Now you are collecting monthly payments for the next 20 years. Sure it’s money coming in, but you need all your money so you can move on and buy another house. Also, you are now having to deal with all the other things that are involved in the seller finance world… like:late payments, insurance, taxes, collecting payments, record keeping, and more. If you are tired of this headache and want to get a lump sum cash payoff, then contact us today so we can give you a quote.