The Importance and Need of Financed Mortgage Notes

Owner-financing is also known as seller-financing and it is used for properties that are sold privately, without the use of a traditional bank. The seller of the business finances the sale themselves and carries back a business note or mortgage note. The business seller acts as the bank collecting interest on the money that is lent. The transaction is beneficial to both buyers and sellers as it allows the property sale. The process is much quicker than the traditional transactions using a real estate agent. The financed mortgage notes can be excellent to yield higher investments in the long-term basis.

The financed mortgage notes help to meet the unforeseen emergencies. It includes

• Preparing of the estate
• Settlement of legal matters
• Purchasing a new homePayment of the unforeseen medical procedures
• Making full use of attractive investment opportunities
• New business starting
• Completion of college education and re-training
• Going for a dream vacation
• Purchasing a new vehicle 

How to purchase owner financed mortgage notes?

Here are the steps for purchasing owner financed mortgage notes –

Step 1: Provide your quote

Collect the short information worksheet to send a free no obligation quote. Then it can be submitted over the phone or online.

Step 2: Request for document copies

Check out the copies for settlement statement, promissory note, mortgage, trust deed, or contract. It is good to check the location of originals, especially the promissory note, that will be requested at closing.

Step 3: Acceptance of offer & agreement

Accept the offer that suits the requirement and outlines it in a written agreement. The agreement should be stating the price, the specific conditions of closing and the payment of the costs.

Step 4: Provide review

You need to perform a detailed review of the transactions known as due diligence. It will include the review of buyer’s credit, current tax, the insurance status, payer interview and other details.

Step 5: Title search

It verifies the ownership of the property and the mortgage note. It helps saving time and money to work with the title report that might exist from the original sale date. It will be paid from proceeds and the title search shows money owed on a prior mortgage.

Step 6: Closing

After the completion of all other steps, send a final closing document for signature. The title company handles the money exchange for the original note and transfer documents. Funds are typically paid in the form of a wire transfer or cashier’s check.

It is one of the best ways to make money and earn commissions in the note business. One true method of finding notes is targeting the list of existing note holders. Are you thinking about creating a note to sell your property? Sell the owner financed note to structure the note in a way to make it attractive to mortgage note investors. The purchasing of the mortgage note process is simple while working with a note seller.