Since nearly every prospective looking to sell a note is doing so for the first time and probably the last time, I get a lot of questions about the note selling process. So nearly every note holder starts out with “I’m would like to sell my note and need to understand how the process works.”
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Our process is pretty straight forward and is as follows:
First step is to collect the information about the home’s sale and the resulting promissory note. The primary information we need is the sales price, down payment and terms of the note such as when was the first payment. (For sellers looking for simultaneous closing mortgage note buyers, we can help although you can’t sell a note with a simultaneous closing and stay away from RESPA laws, however if the note fits our note buying criteria we may can buy a note after 1 payment is made.)
Once we have this information, we work up a quote. If the seller accepts the quote, we send them a purchase agreement. Once signed, we will also need the security (Mortgage or Deed of Trust depending on the state.) and the note in order to pull credit. If credit is acceptable, we ask for proof of payments, usually only the last 12 payments. If this shows they have been paying on time, we then order an appraisal.
If the appraisal comes in satisfactorily, we order title and proof of homeowner’s insurance. Once title is clear, we usually close via overnight documents. Once we have the Originals and the final purchase agreement back, we order the sale recorded. Once we have confirmation of this from the Title company, we wire funds to the note seller and that’s it. I hope this was helpful.