Frequently Asked Questions
What are the steps to selling my note?
The less information you provide
(or it's incorrect),
the less accurate your quote will be
and the more time it will take.
OVERVIEW: After you submit the quote request we give a soft quote. Once that's accepted we like to have documentation that surrounds how the note was created submitted to our office. We will carefully review this documentation for accuracy, correctness, and legality. We will also check the credit of the payor(s) on the note and the value of the property (the 3 main reasons the value of a note will go down after the initial soft quote is given are unacceptable credit, property value lower than the sales price and title defects that cannot be fixed). Once all of this information is received and reviewed we will make arrangements to forward a closing package with instructions out to the closing attorney, escrow or title company that will oversee the closing, recording, and funding of the transaction. Typically we will wire transfer funds to the closing agent the day of closing.
Week 1
1- Submit completed Quote Request Form.
2- We offer a a soft quote SUBJECT TO our due diligence.
3- You accept the soft quote.
4- We execute a One Page Quote Letter that will outline all of the terms of our purchase and stipulations that may be involved and list documents needed to start our due diligence.
5- Property valuation (takes 3-5 business days) and payor credit report ordered. WE PAY FOR THEM.
Week 2
1- Review of Property Valuation and payor credit report.
2- Review and verify all documents requested.
3- Execute Purchase Contract.
4- Finalize Collateral Review.
5- Fund the transaction.
How long does it take to close my transaction?
It can vary but generally speaking 1 to 3 weeks. The more documentation you provide as soon as possible, the faster we can close.
What documentation do you require?
Here's a list of the items we generally require, although there may be more, and some of these items can be waived if not obtainable.
- Copy of signed Promissory Note or Contract for Deed (if not already provided)
- Copy of recorded Real Estate Security Instrument (Mortgage, Deed of Trust, etc.).
- Copy of mobile home title, if applicable.
- Closing Statement signed by all parties.
- Credit report of payor(s), if available.
- Recorded copies of all intervening Assignments/ Warranty Deeds and Note
Endorsements. - Proof of adequate hazard insurance (unless unimproved land).
- Warranty Deed to the buyer (if applicable).
- Photographs of the subject property and/or and old appraisal (if available).
- Verifiable payment history (cancelled checks, deposit slips).
- Proof of the down payment in the form of a copy of the settlement statement or copy of the deposit, if available.
- Real Estate Sales & Purchase Contract (Closing Statement/ HUD 1).
- Evidence of current property tax status – verbal is acceptable if not available on-line (ie. Paid, Delinquent, or Due).
- Survey of subject property (if available).
- Mortgagee's Title Insurance Policy and/or Title Opinion from original transaction (if available-If the Security Instrument is a Contract we will need a new Owner’s Commitment).
- Appraisal (if within 3 mos.).
- Copy of the previous title policy, if available.
- Copy of property insurance declarations page, if available.
- Any additional information that the note seller provides about the purchaser(s).
- Escrow balance and/or taxes and insurance payment information, if applicable.
- Authorization to Release Loan Information (if applicable)
- Legal entity documents, if applicable.
- Note payor's name, address, phone, marital status, employer information and social security number.
What costs will I be responsible for?
Generally, the quote you receive will be the amount you actually net out of the transaction. All fees will be paid by us.
Can you give me an example of the different note selling options?
Yes. Go to our homepage and download our free short reports.
How much cash will I receive for my Note and Mortgage if I sell??
Our purchase price will vary with the different types of collateral that exists, the quality of the payors on the note, and general economic market conditions. The “discount” of the remaining principal balance owed varies according to the rate of interest and the remaining term on the note. Ever sensitive of the “discount” issue, we have experienced personnel that are always ready to assist you in discussing alternative ways to maximize the amount of cash you can obtain from the sale of your note.
If I convert my mortgage to cash, how will it affect the person(s) paying me?
It will not. All terms and conditions set forth in the original mortgage and note will remain in force. The only change will be to whom and where future payments will be sent.
Will I need to attend the closing?
Not necessarily, the Attorney, Escrow closing or Title Company can often close the transaction by sending out to you the closing paperwork for your signatures. When the documents are returned to the Title Company, they can then disburse the funds to you.
How will I be paid?
Typically by Cashiers Check or if you prefer via wire transfer.
Will I incur any “out of pocket” expenses to complete the transaction?
Ordinarily not.