You may wonder who owns your owner-financed mortgage after you sell your note to American Equity Funding (AEF) or other mortgage buying companies. Following the purchase, we (AEF) own the note and receive the payments. In many cases, however, it is in our client’s best interest to broker the note to a bank or other financial institution. The new buyer receives the payments in these situations, and American Equity Funding ensures a smooth process.
The following examples illustrate the decision to either keep or broker your note:
Keeping the Note
American Equity Funding recently closed a private mortgage for a client in less than two weeks, including signing the contract with the seller receiving funds. In this case, AEF felt that keeping and servicing this note was the best option. Credit must also be given to the note seller, who quickly provided a well-documented package. Amazing things happen when we work together as a team!
Brokering the Note
Another repeat client had more than one owner-financed mortgage note and was serious about the need to sell them quickly. He called American Equity Funding on Christmas Eve and stated the request to finalize the purchase before the end of the year for tax purposes. This was an unusual situation, and the note seller had done due diligence in preparing.
Extra help was solicited, and our exceptional team worked diligently throughout the holiday, completing the transaction by the required deadline. The note seller was extremely excited! American Equity Funding felt that this pool of notes would be best serviced by brokering it to a financial institution from out of state who was very happy with the purchase.
These circumstances illustrate our commitment to excellence for every client, regardless of whether we keep or broker your note.
Mortgage Financing
Banks are not typically set up to deal one-on-one with note sellers and do not want to compile the needed documentation. Therefore, they rely on companies like American Equity Funding to find and provide properly documented notes. Both note sellers and buyers alike benefit from our professional services.
Selling an owner-financed note without help can be very stressful and challenging, especially for first-time note sellers. American Equity Funding prides itself on fast, friendly, and exceptional service, and we welcome the opportunity to assist you!
Steve Whitlock
Owner, American Equity Funding
1-800-874-2388