Why do people, especially homeowners, decide to sell their mortgage notes? What motivates them to sell?
The leading motivation for people selling mortgage notes is obtaining a large sum of money in a timely manner. For homeowners who need immediate cash flow, one option is to sell mortgage notes. Both private homeowners and real estate investors can sell notes to fund personal expenses or business ventures.
Depending on how much money you require, you can arrange one of these selling options with a buyer:
- Sell the entire note.
- Sell a specific dollar amount.
- Sell a percentage of the mortgage payment.
Why Sell A Mortgage Note?
The most common reason people, specifically private mortgage holders, decide to sell their mortgage note is to get hold of a lump sum of money to handle immediate needs.
Selling a note is a decision that is not always right for everyone, but can extremely be useful or profitable for many people with notes.
Selling your mortgage note would achieve other financial goals. Here are some of the most common reasons people sell their mortgage notes:
- Invest in new real estate ventures.
- Moving money to a different investment.
- Obtaining a lump sum of cash
- Build up emergency savings.
- Stash extra money for retirement.
- Pay off medical bills.
- Pay off student loans.
- Buying a house
- Afford expensive home renovations or repairs.
- Funding a family milestone, such as a college education or wedding
- The need to divide an estate
- The need to divide marital assets, which include a mortgage note
- Concern about the risk of being a lender
- Sometimes a homeowner turns to offering a private mortgage note to sell a house quickly, because the buyer is able to then bypass the traditional bank mortgage approval process. In these cases, the new note owners can sell the note quickly to receive the lump sum they needed all along.
So Why Should You Sell Your Mortgage Note?
One of the benefits of owning a private mortgage note is that it’s an easy investment to quickly liquidate. Some owners find that they’d rather have a large lump sum in lieu of a slow trickle of scheduled payments. Other owners sell a portion of their future payments to get a lump sum to handle a sudden financial need.
Why Would I Want to Sell My Loan for Immediate Cash Now?
When you convert part or all of your loan into cash, you gain several advantages in addition to immediate cash:
1.) You don’t have to worry about the payments you receive each month slipping away on life’s little expenses.
2.) You receive a substantial sum of cash right now, enough to accomplish some important goals.
3.) You don’t have to worry about collecting monthly payments or servicing your contracts; we handle all of that.
4.) You don’t have to worry about whether the taxes and insurance premiums are paid each year to protect your investment; we handle all of that.
5.) You don’t have to worry about whether your Borrower will continue to make his or her payments.
5 Reasons to Sell Your Mortgage Note Now
Those items aside, here are the top five reasons to seriously consider selling your note for cash today.
1.) The Housing Market is High
We have been there before haven’t we? You really don’t need a crystal ball to predict what is going to eventually happen.
Whether you want to call it a “crash” or a “correction,” the bottom line is that it can affect your pocket book if your payor becomes upside down in the property and ends up owing more on the note than the property is worth.
2.) Interest Rates Are Low
We have had a long run of banks lending money again. And buyers have been taking advantage of low rates.
Meaning, at this stage of the game, you most likely should have had a cash buyer or one that qualified for a bank loan. At the very least, if you charged a good interest rate, your payor should have seriously considered refinancing.
It could be time to cash out and keep your money.
3.) Stability
Let’s face it, the world is moving at a much quicker pace than it used to. The stock market moves the second a politician says something. Trade wars could go in our favor…or not.
All this turmoil makes for a lot of variables that don’t work in your favor. Don’t get us wrong…it could go very much in your favor…but it is a great unknown.
The question to ask yourself is would you rather roll the dice on the future economy, or ‘cash out’ and budget based on what you know you have?
4.) Seize the Day
The future is no place to place your better days. Maybe it is finally time to go on that trip to Europe, on a Caribbean cruise, remodel the house, or simply take a quiet family vacation on the lake.
Whatever you have been putting off for the future, maybe the future is now.
5.) Re-Align Your Goals
It is possible that you never really wanted to carry back a note in the first place, or it didn’t quite work out the way you hoped.
You don’t owe anybody any reasons for the change. We get it. Life happens. Situations change.
No matter what your reason for selling your note, we are here to help with a No Obligation Quote on what the fair market value of your note is today.
Did any of those reasons ring true to your current life situation? Are you thinking, “It’s time to sell my mortgage note.”? If so, request a FREE quote today and find out the value of your mortgage note. We have cash for your note now!