In this blog space, we’ve previously covered the most common reasons for selling a mortgage note or promissory note, as well as the reasons why that note may be sold at a discount. Selling a mortgage note, discounted or not, is an extremely easy process, as long as it’s handled by a professional service company such as American Equity Funding. Attempting to sell a mortgage note without the advice of an industry expert, however, could prove to be not only messy and confounding – but costly. Tax implications, legalese, and compounding interest rates all add to the uncertainty of selling your note on your own. Call American Equity Funding today to take your mortgage note sale from stressful to stress-free!
So, in order to begin to understand selling your note better, let’s take a step back. American Equity Funding has given the basics on selling mortgage notes, but we skipped past another essential question: Why would one wish to sell a mortgage or promissory note?
The answers may surprise you. Many times, the reasons for selling a mortgage note are much more straightforward than you might think.
Unfortunately, divorce has become as much a part of life as marriage. According to the American Psychological Association, nearly 50% of all couples married in America eventually file for divorce. Before this happens, however, many couples invest in property conjointly to simultaneously increase their net worth while also increasing the closeness of their relationship.
When things unfortunately fall apart, this conjoined investment quickly turns sour, and the once-happy couple quickly looks to selling. Sometimes, one party or the other receives the note as a settlement and is looking to offload the cost, possibly to pay for legal fees. Other times, one party seeks to sell their portion of the investment to wipe themselves clean of the entire situation. Either way, while a divorce is an unfortunate piece of our societal puzzle, it is a very common reason for selling a mortgage note.
If you become ill or incur bodily injury, it can be tough to continue to pay sometimes pricey medical bills without the ability to work. One solution is to sell your note, or a part of your note, to American Equity Funding.
Doing so would allow you to obtain an initial lump sum upfront to continue to pay bills. It’s tough making ends meet when unable to work. Unless, of course, you use your mortgage note to your advantage, giving you the leeway to pay back costly medical expenses before they pile up.
Most people agree that chasing a payee around to receive payment on any type of debt can be exhausting. Not wanting to put yourself through the stresses of ensuring weekly, monthly, quarterly, or even annual payments is understandable.
Let American Equity Funding worry about payment for a while, by selling a portion of your note to us.
Selling a mortgage note can allow for investment into that career foray you’ve been hoping for. The lump capital acquired from a note sale can then be used as a purchase or down payment into an additional, or alternative, career.
Similar to the previous paragraph, selling a mortgage note to American Equity Funding can open the door to a new home (pun intended). The capital acquired from a note sale can, many times is, used as an initial down payment on a home.
But why not simply live in the location covered by the mortgage note in the first place? Remember, mortgage notes can also include non-residential buildings.