Many people choose to sell their mortgage notes when they need cash. Selling mortgage notes in California is also a great idea if you want to fund another immediate need that requires cash. You may also choose selling your mortgage notes in California if you want to rid yourself of the risks associated with a mortgage note. BGK investments, leading mortgage notes buying and selling experts in California explain how to make the most of selling your mortgage notes.
Full Purchase
Selling a mortgage note is a full purchase when the holder sells all the remaining payments on the mortgage note. Selling mortgage notes in California with a full purchase allow the seller to be free of the risks of being the lender. The risks involved with the mortgage note are real estate depreciation, borrower not making payments or foreclosure. As the buyer is now going to take these risks, the sale of mortgage notes is done at a discount.
PARTIAL PURCHASE
Selling mortgage notes in California can also be done partially. You may choose to sell only a part of the remaining term, say 60 months out of remaining 120 months. You would again get ownership of the mortgage note after 60 months.
SPLIT PARTIAL PURCHASE
The note seller and buyer may also choose to split the monthly payment. Selling of mortgage notes in California in this manner is called split partial. Since the buyer bears less risk, the seller would get more value as compared to the other two options.
To decide which option you would choose, BGK Investments advises you to consider the following before selling mortgage notes in California:
• How much cash you need?
• How much risk are you willing to assume?
