Mortgage notes are commonly used to ensure the promise of a borrower to repay a specific borrowed total, plus interest, with a specific time frame during which the note is to be repaid. Offering a quick solution to a financial need, a mortgage note may be sold to a mortgage note buyer. Simanda Investments offers their clients financing on their mortgage notes through a painless and sound exit strategy.
Sell Mortgage Note
There are multiple options available to those with a mortgage note to sell:
- SA Full Note Purchase
- A Split Buy-Out of The Mortgage Note
- Reverse Partial Purchase The Promissory Note
To sell a mortgage note, the value must be determined. Multiple variables can affect the value of a promissory note, including:
- Down Payment Amount
- Borrower’s Credit Score
- Loan Amortization and Terms
- Promissory Note Interest Rate
- Note Payback Period/Amortization
- Balloon Payments
- Personal Guarantees
- Seasoning of Loan and Payment History
- Record Keeping of The Notes
- Closing the Property Sale Using a Title Company
How to Sell a Mortgage Note
When a mortgage note holder chooses to sell their mortgage note, Simanda Investments is available to purchase the note and to help their client maneuver the process. With a step by step process on how to sell a note, the guide also comes with a description and investor insights on the pricing of an asset that is under review before purchase. While different investors will have differences in what they prefer, the principal factors they look at are the same for most.
- Get a Quote
- Accept an Offer
- Submit a Copy of Land Contract, Deed, Mortgage, or Note, depending on the state that the note holder lives in
- Simanda Investments will do collateral/asset verification to get estimates on property value, borrower credit, and to confirm notes LTV.
- Once Simanda Investments has the pre-confirmation for the asset, the note seller has to present the following documents so that they can be underwritten:
- HUD1 or Settlement Statement
- Copy of third Party Loan Servicing Agreement (where applicable)
- Proof of Payments Records (canceled checks, bank statements, etc.)
- Title Insurance Policy (makes sure the title does not have any encumbrances from the previous owner)
- Proof of Fire/Homeowners Insurance (should include policy number, number, and agent name)
- Pictures of the property if available
- Rental Amount and Tenant Rental Agreement (if it is a commercial or rental property)
- Note seller reviews, signs, and presents the mortgage authorization documents
- Simanda Investments will order and pay for an appraisal of the building’s exterior
- Once Simanda Investments receives the note appraisal, they will approve it
- Simanda Investments will pay for a title search
- Simanda Investments will then take receipt of the title and confirm that it is clean
- Simanda Investments will then schedule the transaction, including the closing date and time by working with the attorney’s office or the title company of the note holder’s choice or through UPS or FedEx
- Receive wire transfer or check
Spanning 15 to 35 days, Simanda Investments offers a quality and smooth transaction. AX foots all expenses associated with the purchase of the note, including title fees, BPO, and appraisal.
To request a free mortgage note evaluation, or to obtain more information concerning the sale of a mortgage note, please visit the Simanda Investment website.