Amortization - How long a loan is scheduled to run is referred to as the amortization. The amortization depends on the size of the contract, the size of the monthly payment, and the interest rate being charged. (The higher the interest rate and/or the smaller the monthly payment, the longer the amortization will be.)

For you, the Seller, the shorter the contract the better. To shorten the length of the contract, you can increase the down payment and/or increase the size of the monthly payments. Contracts with 10- to 20-year amortizations are common and are preferred to contracts with 30-year amortizations.

You may also consider including a "balloon payment" due in 5 to 10 years. A balloon payment means the full amount owed will be due at that time. Even if the balloon is not "popped" (paid in full by the Borrower), it gives you an opportunity to increase the monthly payment and the interest rate (or both), as well as set a new balloon payment one or two years down the road. By the time the balloon payment becomes due, such increases are generally easily accommodated by the Borrower and may be a preferred option to foreclosure.

As a service both to you and the Borrower, don't set balloon dates that are too near. One and two-year balloon clauses are often unrealistic and create unnecessary difficulties for both you and the Borrower.

The Borrower's Credit Worthiness - Just like any lender, you have every right to information that shows the Borrower has an adequate source of income to pay the obligation. Get references; find out where he/she works, annual income, and obtain a credit report showing how promptly current debts are paid. If selling to a person with a less than commendable credit record, insist on a large down payment or find another Buyer.

Selling All or Part of Your Mortgage, Trust Deed or Land Contract for Cash

We specialize in purchasing mortgages, trust deeds and land contracts. There are many ways of getting cash from your contract. Sell the whole mortgage now or, if you just need a smaller amount of money for some short-term goal, sell some payments now and collect monthly payments again in the future. Many of these plans give you 95% or even 100% of what is now due on the loan. We charge no fees, no points, and no commissions!

Why Would I Want to Sell My Loan for Immediate Cash Now?

When you convert part or all of your loan into cash, you gain several advantages in addition to immediate cash:

1. You don't have to worry about the payments you receive each month slipping away on life's little expenses.

2. You receive a substantial sum of cash right now -enough to accomplish some major goals.

3. You don't have to worry about collecting monthly payments or servicing your contracts; we handle all of that.

4. You don't have to worry about whether the taxes and insurance premiums are paid each year to protect your investment; we handle all of that.

5. You don't have to worry about whether your Borrower will continue to make his or her payments.

How Can I Find Out How Much My Mortgage Is Worth?

All you need to do is call. One brief consultation with us will answer all your questions, and enable us to clearly present a few options. Decide for yourself whether turning your loan into immediate cash - or keeping it - makes the most sense for you. The choice is yours.

If you have any further questions about selling property using seller take back financing or about our other services, please call. Of course, there is no obligation and all discussions are totally confidential.