Frequently Asked Questions
about Buying & Selling Mortgage Notes
Q. What is a note?
A. A written document that states a promise to pay, and the terms which include the amount, interest rate and length of time in which to fulfill this promise.
Q. What if I want cash NOW instead of waiting up to 30 years to get paid back?
A. That's where we come in. We work with investors who are interested in purchasing your note (or your client's note) from you so you can have the money you need. This way, you don't have to worry about late payments or non-payment. You will convert your long-term investment into cash. You won't have to worry about whether or not the borrower will continue to their payments.
Q. Who buys notes and what type and size will they buy?
A. Actually, there are thousands of individuals across the country willing buy your note. Just like banks buy mortgages, private buyers buy notes as investments. They collect payments over time for a steady stream of income. Our network of buyer's is able to purchase all types of notes as well as any size.
Q. How much is my real estate note worth?
A. There are a number of important factors that determine the market value of a note:
1) The type of property, location and value
2) The amount of owner's equity
3) The current note balance and loan to value (LTV)
4) The interest rate
5) The number of payments made, remaining and amount
6) The general credit history of the borrower
7) Your experience receiving payments
Q. What information is required will have to supply to the buyer?
A. Upon acceptance of the quote, copies of the following documents would have to be faxed prior to closing the transaction:
1) A payment history needs to be reviewed 12 months is recommended
2) A credit report on the borrower needs to be reviewed
3) An appraisal must be completed on the property
4) A title insurance policy must be reviewed or purchased
Q. Will I incur any out of pocket expenses?
A. In most cases the buyer will pay all cost associated with purchasing your note, including title and recording fees, appraisal, credit reports and more.
Q. Where will the closing take place?
A. Closings are typically set up with a title company located near you. However, everything can be completed via FedEx or Priority mail with complete confidentially.
Q. Once my note is converted to cash, how is my borrower affected?
A. All the terms and conditions set forth in the original note and mortgage remain in force. The only change is who borrower makes the payment to.
Q. Okay now I am ready to sell my note, how do I go about it?
A. For your convenience we have on our website we have a simple note analysis worksheet. The worksheet has a number of questions regarding the note itself and the property secured by the note. Once you have completed the information Barry Olfern and Associates will post your note to our nationwide network of buyers, with anonymity. As we receive quotes for your note we will present the two best offers to you for your consideration. Upon your acceptance, one of our qualified representatives will assist you with the completion of the necessary forms.
Q. How long will it take before I get my money?
A. All deals vary, but normal closing time is 2 to 3 weeks once we have lined up a buyer.
If you have any other questions, please feel free to contact us.
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