Susie sells and owner finances a home to John. Circumstances change and Susie finds it necessary to sell the mortgage note for cash.
If you are in a similar situation, the following information will help prepare you to successfully sell your mortgage note and safeguard the process.
Know Your Buyer
Knowing and trusting your buyer is first and foremost in selling your note and requiring an application and credit report is vital. American Equity Funding is a company who buys owner financed mortgages and can assist with this process pending permission of all involved.
Procure a Large Down Payment
Acquiring a significant down payment reduces the risk of the mortgage buyer walking away if difficulties arise and also helps the loan-to-value (LTV) ratio in case of default. The LTV ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased.
Hire a Professional
Hiring a professional to prepare your documents will guarantee all regulations are met and provide legal protection. American Equity Funding is a professional company and will ensure that all required documents are in place and legal.
Purchase a Mortgagee Title Policy
A mortgage title policy costs very little when purchased as a combination with an owner’s policy when selling the property and can save time in the closing process. The title policy is much more expensive when required to purchase when selling your note. For further information, please contact American Equity Funding or an attorney.
Maintain Accurate Records
Maintaining accurate records of payment adds value to your note by proving financial stability and verifying payment history. Deposit payments in a timely manner and make copies of all checks and deposit slips.
Preserve Original Note
Your original note is the negotiable instrument so keep it secured in a safe place! Lost notes are similar to losing a check and although can be overcome, it is a hassle and time-consuming.
These crucial efforts will be valuable when selling your mortgage note! American Equity Funding pays cash for notes and is happy to assist in any way.