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Should You Sell Your Seller Carry Back Mortgage?

By: Mike Evans

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You placed your property on the market, and offered owner financing. And, as you expected, it sold quickly. Now that you own a seller carry back mortgage note, you are asking yourself, should you sell this privately held note for a lump sum of cash?

Many private mortgage note holders like you do not know that investors, both institutional and private, purchase owner financed mortgage notes and contracts-for-deed. The amount these investors are willing to pay is determined by the merits of each individual note.

A note's merit is determined by a number of factors, to include (but not limited to): the note's seasoning (how long the buyer has been paying on the note without problems); the note's equity (how much of the note has been paid off the greater the equity, the better); location and condition of the property; the length of the note's term (number of months); the buyer's creditworthiness; the note's interest rate; whether the note has a balloon payment or not; etc.

There are several benefits for you in offering your seller carry back mortgage note for sale:

- It will provide you immediate cash to make other investments, pay off bills, purchase other properties, start a business, take a vacation, pay medical bills, pay for college tuition, provide money for children/grandchildren, donate to charity, etc.

- You will no longer need to collect payments on the note. Collecting mortgage payments is a necessity, and may be a stressful chore if you are doing it yourself. If you have been using a mortgage servicing agency, then you may be paying upwards of $100.00 per month or more for this service. When you sell the mortgage, you will be able to save this monthly outlay, as well as rid yourself of the stress.

- You will no longer run the risk of non-payment. This is perhaps your worst nightmare: your buyer defaulting on his payments. You may find yourself constantly monitoring your buyer's financial status for signs of adverse changes, such as slow pays, huge medical bills, job loss, etc. This is huge stress for you. Selling the note will end this.

The first point you must understand is the time value of money. This means that no investor will pay you the face amount of the note, then wait years to recoup their investment. This occurs because money is worth more today than it will be years from now. So, investors will discount or decrease the amount of money they will pay for the note to compensate for having to wait years to get their money back. Remember: everything and I mean EVERYTHING…depends upon the note's fundamentals. These factors are the only considerations important to note buyers. So, count on receiving only 50 to 80% of your note's present value.

Your seller carry back note selling transaction will be a relatively simple, quick process. The process is so simple that most legitimate notes buying companies have web sites where you can input your note's information and receive a free-no obligation quote (i.e., how much money it will pay for the note) usually within 24-48 hours.

Click Here for more information about selling your Seller Carry Back Note.

http://www.learn-about-cash-flow.com/mortgage-note-funding.html

Mike Evans is an authority in over 40 types of cash flows. You can E-mail Mike Evans Here! Also, visit (and Bookmark) the Internet's fastest growing cash flow authority website at www.learn-about-cash-flow.com/mortgage-note-funding.html for more mortgage note and seller carry back funding information. Feel free to reuse this article; please keep the bio information attached and intact.

Article Source: http://depositarticles.com/

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