With interest rates near historical lows there will probably never be a better time to sell a mortgage note or promissory note. You see, the market value of your mortgage note is inversely related to the general interest rate environment. This means that as interest rates fall, the market value of your mortgage note increases — and as interest rates rise, the market value of your mortgage note decreases. If you believe that future interest rates are more likely to go up than down, now would be an excellent time to turn your mortgage note into cash.
Sell your mortgage note for top dollar.
What Are Your Mortgage Note Payment Options?
The Mortgage Buyer, Inc offers a number of options regarding the sale of your
mortgage note and each option can be customized to provide you with the amount
of cash you need — when you need it.
Receive The Highest Mortgage Note Purchase Price
Six steps towards turning your privately held mortgage note into the highest
possible amount of cash.
What Are The Benefits Of Selling Your Mortgage Note?
We know of nine good reasons why you may want to convert your long-term investment into cash.
Whether you would like to discuss the possibility of selling your mortgage note or would simply like to have a question answered, we invite you to contact us by phone at (800) 618-2485 or email the Mortgage Note Buyer.
Market Value of your mortgage note.
We recommend that anyone who wishes to sell a private mortgage note first establish its “market value”. This can be accomplished by contacting a number of professional companies like The Mortgage Buyer, Inc. that purchase privately-held mortgage notes. Take the time to ask questions and discuss your individual situation. Provide all of the information they need to do a thorough job for you and be sure to request all purchase offers in writing.
The market value of an owner-financed mortgage note is defined as the maximum cash price a mortgage note holder can sell it for in an active and competitive marketplace. Fortunately for mortgage note holders, an active and competitive market does exist for privately held mortgage notes. Online research will produce a large number of companies that purchase private mortgage notes. Of these, there are a handful of experienced and reputable companies that you have an opportunity to do business with. We recommend that you contact multiple mortgage note buyers before deciding who to conduct business with.
The factors that mortgage note investors will consider when evaluating your mortgage note for purchase include:
The type of property securing the mortgage note. Everything else being equal, the market value of a mortgage note secured by a single family residence will be higher than a mortgage note secured by land or commercial property.
The size of the cash down payment made at closing.
The property’s current market value and the amount of owner’s equity the borrower has in it.
The interest rate on the face of the mortgage note.
The number of monthly payments remaining on the mortgage note. The time-value-of-money dictates that shorter term mortgage notes are valued more highly than longer term mortgage notes.
The current level of interest rates. With market interest rates still near historical lows, the market value of private mortgage notes has never been higher. If/when mortgage interest rates begin to rise the market value of fixed-rate mortgage notes will react inversely and begin to fall.
One of the most important factors in determining the market value of a mortgage note is the strength of the borrower’s credit score. Everything else being equal, the higher the borrower’s credit score is, the higher the market value of a mortgage note will be.
Mortgage note holders exploring the option of liquidating their investment should reach out to several mortgage investors for information. A few calls should be sufficient to explore your options. To help establish the market value of your mortgage note, call The Mortgage Buyer at (800) 618-2485, or contact us via email, or complete our online mortgage note quote form.
Facts when you sell a mortgage note.
Almost every mortgage note can be sold, even mortgage notes where the payments are not being made on a timely basis.
There are a number of companies that purchase private mortgage notes. Together, we create a very active and competitive market.
Mortgage note holders have a number of different sale alternatives available to them; each can be designed to help meet a specific goal you would like to achieve. For example, The Mortgage Buyer, Inc. offers customized mortgage note payment options.
Providing as much information as possible about your mortgage note will help you receive the highest possible purchase price.
These are the steps necessary to complete the sale of a private mortgage note.
The value of the property must be established by completing a drive-by appraisal.
A policy of title insurance must be purchased on the mortgage note.
The outstanding balance of the mortgage note must be verified with the Borrower.
At The Mortgage Buyer, we do all of the work and pay all of the expenses necessary to complete these steps.
As previously mentioned, with interest rates near historical lows there will probably never be a better time to sell a mortgage note. You see, the market value of your mortgage note is inversely related to the general interest rate environment. This means that as interest rates fall, the market value of your mortgage note increases. And as interest rates rise, the market value of your mortgage note decreases. If you believe that future interest rates are more likely to go up than down, now would be the right time to turn your mortgage note investment into cash.