Preparing to Sell My Note
Let’s say that Susie sells and owner finances a home to John. Circumstances change and Susie now needs cash and decides to sell the note.
If you find yourself in a similar situation, here are some tips that will help prepare and safeguard your note selling process:
Know Your Buyer
This is first and foremost! Have an application and require a credit report. American Equity Funding can assist with this process pending permission of all involved.
Procure a Large Down Payment
Acquiring the largest down payment possible helps the loan-to-value (LTV) ratio in case of default and also reduces the risk of the payer walking away if difficulties arise.
Hire a Professional
Hiring a professional to prepare your documents will ensure all regulations are met and provide legal protection.
Purchase a Mortgagee Title Policy
A mortgagee title policy costs very little when purchased as a combination with an owner’s policy when you sell the property. The title policy is much more expensive if you are required to buy it later when you sell your note and it can also save time in the closing process. For further information, please contact American Equity Funding or an attorney.
Maintain Accurate Records
Maintain accurate records of payments and be sure to deposit and make copies of all checks and deposit slips. This verifies payment history and adds value to your note because you can prove financial stability.
Preserve Original Note
Keep your original note in a safe place. Many people lose the note and although it can be overcome, it is much like losing a check and is a hassle. The note is the negotiable instrument so keep it safe!
These crucial efforts will help when it is time to sell your note! Please contact American Equity Funding if we may assist you in any way.