| If you sold property using seller financing chances are | | | | documents including a payment history, insurance |
| you've wondered about selling the real estate note. | | | | policy, and existing title report. |
| Maybe you're tired of receiving monthly payments, | | | | Step #5 - Appraisal |
| have a better use for cash today, or are just curious | | | | The note investor will order an evaluation of the |
| what the note is worth. | | | | current property value. This usually takes the form of |
| Here's how to sell a mortgage note, trust deed, or land | | | | a Broker's Price Opinion (BPO) or drive-by appraisal. |
| contract in 7 easy steps. | | | | The investor wants to be sure the property value is |
| Step #1 - Request Quote | | | | still equal to or greater than the sales price. If the value |
| Just complete a short informational worksheet to | | | | comes in low, the note investor may present a revised |
| receive a free no obligation quote. This can be | | | | offer for consideration. |
| submitted online, by fax, or over the phone. | | | | Step #6 - Title Search |
| Step #2 - Provide Document Copies | | | | The title search verifies ownership of the property and |
| To get started note buyers like to see copies of these | | | | the mortgage note. It saves time and money to work |
| three documents: | | | | with any title report that might exist from the original |
| - Settlement Statement | | | | sale date. If the title search shows money is still owed |
| - Promissory Note | | | | on a prior mortgage it will usually be paid from |
| - Mortgage, Trust Deed, or Contract | | | | proceeds. |
| It is also a good time to be sure you know where the | | | | Step #7 - Closing |
| originals are located, especially the Promissory Note, as | | | | When all steps are complete the note buyer will send |
| they will be requested at closing. | | | | the final closing documents for signature. The title |
| Step #3 - Accept Offer & Agreement | | | | company is often used to handle the exchange of |
| Once an offer is accepted it will be outlined in a written | | | | money for the original note and transfer documents. |
| agreement. In addition to stating the price, the | | | | Funds are typically paid in the form of a wire transfer |
| agreement will specify conditions of closing and who | | | | or cashiers check. You are also encouraged to have |
| pays costs. | | | | your attorney review and advise with the closing |
| Step #4 - Note Buyer Review | | | | process. |
| The mortgage note buyer will perform a detailed | | | | Selling your mortgage note can be a simple process |
| review of the transaction, known as due diligence. This | | | | when you work with an experienced note buyer. Just |
| includes a review of the buyer's credit, current tax and | | | | take a few minutes upfront to gather your information |
| insurance status, payer interview, and other important | | | | and documents and they will handle the rest for you! |
| items. They may also request copies of additional | | | | |