"Mortgage Note Buyers - Are They Really Helping You Get The Most Money For Selling Your Mortgage Note?"

-by Kenneth Edwards

http://www.247mortgagenotebuyer.com

All Mortgage note holders want to know more about selling their mortgage note. Don't you?

Well the popular way to get a lump sum of cash for your future payments is by using a mortgage

note buyer. But beware! Most people don't realize they have different creative options when

using a contract buyer that can keep them from getting the most money for their owner-financed mortgage note.

It may seem scary or challenging, but truly it is not,
unless you do not know the answer to this question.

Can I receive cash now and still hold part of the note? In other words do I have to sell all

of my note at once?

At first glance this may seem obvious that this is the best choice, because it will get you the

most money up front. For some people it is. When it comes down to it, it is up to you and

your needs. If you need or want a large all cash payment and want to be out of the deal, rid

of headaches and worries of a default buyer, avoid destruction of property, taxes and

insurance, and would like a larger sum of money now instead of collecting small

monthly checks, then a full sale is best.

But lets take a look at some more needs. If you are just looking to get a larger down

or some money to take care of some immediate needs or pleasures then a partial

payment may be better. Maybe you just want to just lessen the amount of strain or

burden of carrying the note and would like to sell just a portion of each monthly

payment. Then a split payment option will be better for you. (this way you can vacation,

consolidate bills, by a new car)

What is a Partial?

A partial is the purchase of a portion of an income streams remaining payments, or a

purchase of a portion of a specific payment, or any combination thereof.

There are many times when this may make sense. Lets say that you have a new note

and it has not been seasoned (Length of time that a note has been in place and paid on),

it has little or no down payment, and has poor credit by the payer. In this case it would

be better to sell only part of the future payments. It will get you more money in the long

run because the mortgage note buyer would have less risk should the buyer default on the

note. Then after the note has experienced seasoning you could sale the rest of the

payments at a much higher percentage.

Lets look at an example of this:
Sales Price: $100,000   Down Payment: $5,000
Original Note Balance: $95,000
Payers Credit: Poor   Seasoning: 1 month
Appraised Property Value: $100,000
Term: 360 Months    Interest: 10%
Remaining Payments: 359

This is a low quality note because the buyer is not putting much money down, the pay

back period is very long, and the buyers credit is bad. But you could still make out like

a bandit by selling it as a partial. Let's say you sold the first 120 payments (10 years)

for $51,000. After the 120th payment the contract would be returned back to the you.

The balance owed to you would be $86,391.12. You would then start to collect the

payments from then on. Lets see how this looks.

Sales Price: $100,000 Down Payment: $5,000
Original Note Balance: $95,000
Contract Written For 30 years @ 10%
Montly Payment: $833.69
Note Buyer purchases first 120 payments for: $51,000
Total Cash to home seller $56,000
(Down Payment + Cash From Note Buyer)
After 120 Payments contract is returned to you with a
balance of $86,391.12

Total Money To You: $142,391.12 (including interest).
Not shabby for a house that sold for $100,000.

So what is a Split?

A split is a purchase of a specified monthly amount. If your getting to the point where

you would like to enjoy some finer things in life, while still receiving a good monthly

income, then a split payment is a great choice for you.

For example, if the monthly payment on a seller-financed note is $1,000, we could

purchase $200, $500, $750, etc. of the monthly payment. This will allow you to get

cash now and then still collect a monthly income from the note.

All in all, each situation is different and may need be tailored differently to meet your

needs. I can't say exactly what you will get for your individual situation, but I can say

that you should walk away happy. Selling your mortgage note should be much easier

and more profitable now that you are armed with some creative options.

==============================================

Kenneth & Kimberly Edwards founders of The 24/7 Mortgage
Note Buyers. They are equipping note holders with the
information they need to get the largest bucket of cash
they can for selling their mortgage note.
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