3 Things You Should Know About Selling a Private Mortgage Note Whether you’re working with an investor to sell your private mortgage note or dealing directly with a buyer, it’s important to know the ins and outs of doing so. No matter your reasoning for selling your private mortgage note, remember to look at more than just one bid to ensure you’re receiving market value for it.
Here are three other things you should know about selling a private mortgage note.
Your Personal Credit Doesn’t Matter
When preparing to sell your private mortgage note, you should gather all of the information about it and the property. Contrary to popular belief by many note sellers, this doesn’t include your personal credit information. The mortgage note’s strength is determined by factors like its terms, the property’s value and the BUYER’S credit rating. Never disclose your personal credit information.
Your Note Won’t Sell at 100 Cents on the Dollar
As much as you’d like it, you won’t receive 100-percent value for your private mortgage note. This is because a buyer will accrue expenses while obtaining your note, including costs associated with a title search, a drive-by appraisal and, if everything checks out, the closing. That’s why it’s even more important to look around for more than one mortgage note quote, so you can maximize your sale.
Your Proof of Payments Add Value to Your Note
When a buyer – investor – looks into purchasing a private mortgage note from you, he or she doesn’t want to buy a problem. By providing proof of payments, you put the buyer’s mind at ease of any outstanding issues. This can add tremendous value to your private mortgage note, both when shopping it and when selling it.
Stephen K. Hachey, a Florida real estate attorney, can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.