Is a Mortgage Note Buyer a Good Idea?
Is a Mortgage Note Buyer a Good Idea?
Is a Mortgage Note Buyer a Good Idea?If you are trying to sell your home, then you may have come across a mortgage note buyer. This is a much different type of company than a traditional bank, although they both handle property loans or mortgages. A company that offers note buying services can be very important to you if you are trying to sell your property quickly.
When you sell your property, you have several options. You can look for cash buyers, which are few and far between. This is the ideal situation, however, since you will receive full value for your property and the deal will close quickly. If you can't find a cash buyer, then you may find someone who already has financing in place. Again, these buyers are also rare since not a lot of banks are seriously offering mortgages these days.
Another option that you have is to finance the buyer yourself. By holding on to the lien, you then become the banker and collect a monthly payment just like a bank would. You can then choose to retain the lien and collect monthly payments or you can sell it to a mortgage note buyer. This can be done at any time after the sale of the property.
The advantage of using a mortgage note buyer is that you won't have to wait thirty years to collect your money. Although cash flow is great, you may need capital to make your next purchase. A company that buys the note will pay you a lump sum, which will allow you to get your equity out of your property and take you out of the mortgage-making business. For many real estate owners, doing business like this is the quickest and easiest way to move a piece of property, and will continue to be so until the credit markets loosen up.