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Selling Mortgage Notes Why you should Sell your Mortgage Note. Case Study: Judy decided to sell her home and move to a neighboring city. She had lived in her home for a number of years, so by that time she owned it free and clear. Judy asked $80,000 for her home. Bob, an acquaintance of hers, discovered the home was for sale and expressed an interest in buying it.
For whatever reason, Bob was unable to finance the purchase through a bank. Judy, however, was eager to make the sale. Since she already owned the home outright, she agreed to finance the sale herself.
Bob gave Judy a cash downpayment of $20,000 and a Promissory Note for the remaining $60,000. He agreed to pay the $60,000 at 10% interest over the next 15 years in monthly installments of $644.76. So Bob began to write his monthly mortgage checks directly to Judy.
About 5 years later, Judy needed cash to pay for her daughter's college tuition for the next 4 years. She no longer wanted to deal with the monthly payments from Bob and decided to obtain a lump sum of cash instead. A bank however, was unwilling to purchase the remaining payments of the Mortgage Note.
Judy heard about Sue, who is a Certified Cash Flow Consultant (C.C.F.C). Sue was able to contact a funding source who then purchased the note from Judy, giving her the cash she needed. Cash In on Cash Flow, pp 85-86.
The above is just one example of how someone was able to obtain the cash they needed by selling all or part of their mortgage (real estate) note.
Could your financial picture be improved by selling all or part of your note?
Reichel Funding Solutions will make it easy for you to get access to your cash. Selling your privately held mortgage note could give you the opportunity to invest that money in something more important right now. You may even want to take advantage of todays low interest rates to buy a new home or remodel your existing home.
Moreover, inflation eats away at the future value or "buying power" of money, and thus, the future payments collected on your note. The longer you wait to collect a payment, the less value that payment has.
Your payor is not affected when you sell your mortgage note. People are already familiar with being notified to send their insurance policy payments or mortgage payments to a new company when their mortgage or policy is sold to another company.
Mortgage Notes do not have to sold in their entirety either. You can sell off part of your note (a specific number of payments, for instance) and keep the balance of the future payments for yourself.
It's easy to get started and there's no cost or obligation to find out just what your options are.
Reichel Funding Solutions will help you get the cash you need or want and get it for you in a timely manner.
Business Hours: 9am - 6pm Eastern
Toll Free: (866) 322-0878
Local: (440) 466-6725
Fax: (440) 466-8544
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