2018.10.01 13:38 | Sean Carter
Increasingly, homeowners are agreeing to issue private mortgages to buyers as banking requirements become stricter. Unfortunately, Millennials (the generation that should be buying homes) often find themselves unable to because they owe too much in student loan debt or they aren’t fully employed. Lending requirements for banks are regulated, so there isn’t often much wiggle room once your reach the limits.
Private mortgages offer a way for homeowners to sell their homes and buyers to qualify for a mortgage when they have exhausted all other options. In this scenario, the homeowner would own a note, which is basically a lien against the lendee that is good until the lendee fulfills the obligations of the loan. The lendee and lender agree on a payment schedule that provides the basis for the loan agreement.
While it is a good investment strategy, lien holders may find that they need to sell their private mortgage notes in order to pay off debt or take advantage of new investment opportunities. If you’re looking up how to sell a private mortgage note, you should know that the process is relatively easy. You get quotes from reputable buyers and sell it for cash.
However, it’s important to give buyers a reason to want to buy your private mortgage note. This means you should only choose to lend to individuals you know will pay their bill on-time because buyers will look at payment history and lendee credit scores in their decision to buy a loan. If they don’t think the buyers will pay back the loan, the note is of little value to them. They will also look at the total amount of the loan still due and the value of the property, so keep these factors in mind as well.
By agreeing to a mutually good deal and only look at reputable buyers who are fair and will offer you a quality price on your mortgage note, you can stand to make some decent money if you need cash now.