How Selling Your Mortgage Note Works

A Simple, Straightforward Process From Quote to Closing

If you are considering selling an owner-financed mortgage note, you probably have questions.

How much is my note worth? What information do you need? How long will the process take? What happens at closing?

American Equity Funding has been purchasing mortgage notes and other seller-financed real estate notes since 1989. Our goal is to make the process easy to understand, answer your questions, and help you decide whether selling all or part of your note makes sense for you.

You’re not obligated to sell just because you request a quote.

Selling a mortgage note generally involves five steps:

1. Tell Us About Your Note

Start by giving us some basic information about your note and the property securing it.

We may ask about:

• Current note balance
• Monthly payment
• Interest rate
• Remaining term
• Property type and location
• Payment history
• Original sale price
• Down payment
• Current property value

You do not need to have every document in front of you before contacting us. Start with what you know, and our team can help determine what additional information is needed.

2. We Evaluate Your Note

Every mortgage note is different, so every note is evaluated individually.

Our team reviews several factors that can affect the value of a mortgage note, including:

• The legal documents
• The property securing the note
• The buyer’s payment history
• The buyer’s credit
• The amount of equity in the property
• The interest rate and remaining payment term
• The condition of the property’s title

This review allows us to determine what we can offer for your note.

3. We Present Your Options

Once we have reviewed the information, we can explain your options and provide a no-obligation quote.

You may be able to sell:

Your entire note
Receive a lump-sum payment and transfer the remaining payments to American Equity Funding.

Part of your note
Sell a specified number of future payments while retaining an interest in the remaining payments.

A partial sale can be an option for note holders who need cash now but do not necessarily want to give up all of their future income.

We will explain the options available so you can decide what works best for your financial situation.

4. We Handle the Details

If you decide to move forward, our team begins gathering and verifying the documentation needed to complete the purchase.

Documents may include:

• Original mortgage, deed of trust, land contract, or contract for deed
• Original promissory note
• Closing statement from the original property sale
• Payment history
• Existing title insurance policy, if available
• Property insurance information
• Property information, photographs, or map

Don’t worry if you don’t have everything.

Many of these documents may already be in your files, and our team can help obtain additional items, including a credit report, property valuation, or updated title information.

5. Complete the Closing and Receive Your Money

Once we review the required information and the transaction is ready to close, we prepare the final paperwork and coordinate the closing.

Many straightforward mortgage note purchases can be completed in about 2 to 4 weeks after we receive the necessary documentation.

Our goal is to keep you informed throughout the process so you know what is happening and what comes next.

Don’t assume you cannot sell your note because something about the transaction is unusual.

American Equity Funding has decades of experience working with straightforward notes as well as more complicated situations.

These may include:

• Credit concerns
• Title issues
• Irregular payment histories
• Unusual property types
• Older documentation
• Complicated seller-financing arrangement

If there is a problem, talk to us before assuming your note cannot be sold.

We will review the situation and tell you what may be possible.

The exact timeline depends on the note, property, documentation, title work, and other details involved in the transaction.

Many transactions can be completed in approximately 2 to 4 weeks once the necessary documentation has been received.

Having your original note, mortgage documents, payment history, and information about the property available can help move the process along more quickly.

No.

Depending on your situation, you may be able to sell your entire mortgage note or only a portion of your future payments.

For example, if you need cash for a major purchase, investment, retirement, debt reduction, or another financial goal, a partial note sale may allow you to access cash now while retaining some future payments.

Our team can explain the available options before you make a decision.

American Equity Funding has been purchasing owner-financed mortgage notes since 1989.

We believe selling a mortgage note should not be confusing or intimidating. You should understand how your note is being evaluated, what your options are, and what happens before you agree to anything.

That means:

• Real people you can talk to
• Straightforward answers
• No-obligation quotes
• Individual evaluation of every note
• Full and partial purchase options
• Help gathering necessary documentation
• Clear communication throughout the transaction
• Nationwide note purchasing

You should feel comfortable asking questions at every step.

You don’t have to decide today whether you want to sell your mortgage note.

Start by finding out what your options are.

Tell us a little about your note, and American Equity Funding will review the information and provide a free, no-obligation quote.