BGK investments is a leading real estate investment and loan acquisition firm in California that deals in sale and purchase of real estate, non-performing mortgage notes investments, CMO’s, whole loan trading and mortgage note sales. Mortgage note brokers working at BGK help investors in easy negotiation with the note seller and vice versa. Here are some interesting ways of selling mortgage notes in California-

1. Firstly, approach a mortgage note broker like BGK investments to get easy listing of potential buyers: these companies have links with all kinds of financers including individuals, banks and companies and can get easy access to all of them.
2. Secondly, shortlist and arrange for meetings with potential note buyers or let broker do the needful. In some cases broker does everything from proposals, meetings to closings prohibiting the need of direct meeting of both the parties, which in turn helps saving time and effort.
3. Last but indeed not the least, negotiate as much you can. Selling mortgage note is no easy feat and requires patience: and to reap fruit out of your investment bargain and don’t sell it in hurry.

Protect yourself with outside closings!

When an investor has performed their research and is ready to purchase a private mortgage note they will ask the seller to deliver original documents (note, recorded mortgage, etc.) and sign the transfer package.

The Note Buyer

The note buyer will want these original documents before the funds are released to the seller.

The Mortgage Note Seller

A note seller may understandably wonder,

“How do I know I will ever receive my money once I turn over the documents establishing ownership?”

The Note Buying Challenge

So the note buyer wants the documents before the money is released and the seller wants the money before the documents are released.

The Solution

Using an outside closing through a title company, attorney, or escrow company easily solves this impasse. The outside closer will act as an independent third party (or fiduciary) protecting the interests of both parties.

An outside closing is basically an exchange of money for documents. The outside closer will receive the proceeds from the investor into their trust account and also receive the documents from the seller. It is not necessary for either the investor or the seller to physically be present for the note closing with the use of overnight delivery and wire transfers.

The fee for outside closings average $200 – $400 and can be paid by either party or split equally. Any legitimate note buyer should be willing to participate in an outside closing through a licensed and bonded closing agent.

Outside closings offer protection and peace of mind to both sellers and investors when selling mortgage notes.

Many sellers discover they would now prefer cash today rather than the small amount that trickles in each month.

Here are just a few reasons people have sold all or part of their seller financed mortgage notes for cash:

• Retirement
• Taxes
• Investment Opportunity
• Expensive Medical Care
• Vacation
• College Tuition
• Unexpected Financial Changes
• Peace of Mind – no more worrying if the buyer is going to make late payments or having to foreclose
• Accounting headaches, IRS regulations, paperwork hassles and the list goes on…

Discover Your Options – Request a Free Note Analysis

The only way to decide what is best for your situation is to know the options available.

When you request a free note analysis it reveals the current market value of your payments -  similar to what a real estate appraisal provides for real property. Sometimes referred to as a “note appraisal” or “request for quote,” it lets you know how much your future payments are worth in cash dollars today!

We recommend having your note reviewed once a year as note values change based on market conditions.

Click Here to Receive Your Free Note Analysis Today!

Sellers have the choice to sell all or just part of their future payments for cash today.

Option 1 – When note buyers purchase all the remaining payments on a land contract, mortgage note, or trust deed it is considered a full purchase.

Option 2 – When the note buyer purchases just a portion of the remaining payments it is considered a partial purchase.

Here’s a closer look at two examples using the Full and Partial Purchase Options.

The Full Purchase

For example, a note has a balance of $90,000 at 9.0% interest payable in monthly installments of $1,140.08 with 120 months (or ten years) of payments remaining. When the seller sells all 120 remaining payments of $1,140.48 to an investor it would be considered a full purchase.

The Partial Purchase

If the investor only purchased the next 48 monthly payments of $1,140.48 each then it would be considered a straight partial purchase. Once the investor received the next 4 years of payments, the note would be reassigned to the seller and the seller would collect the remaining 72 payments (120 total payments less the investors purchase of 48 payments leaves 72 payments remaining to the seller).

The purchase can also involve splitting the monthly payments received from the buyer between the investor and the seller, also known as a split partial. Using the same example of 120 payments of $1,140.08 each, an investor might agree to purchase $600 of each remaining payment leaving a remaining residual of $540.08 to the seller for the next 120 months.

The terms of the transaction are spelled out in the Purchase Agreement. This important document outlines the servicing arrangement along with what happens in the event of an early payoff or default by the buyer. Competent legal counsel should review the agreement to protect the rights of all parties.

So What Option Is Best When Selling Mortgage Notes?

The best choice will depend on the cash needs of the seller and the value of the payments being sold.

A partial purchase can help minimize the discount but it comes with the worry of the buyer keeping payments current in the future.

A full purchase can give sellers peace of mind knowing they are through with the property once and for all.

Please contact us if you would like to discuss the options available on your owner financed mortgage note.

Wondering just how much your mortgage note is worth?

The value of a note or contract is affected by many factors including the:

• Down Payment
• Terms of the Note
• Buyer’s Credit Rating and Payment History
• Type of Property Sold and Its Current Value

Since each transaction is unique, we offer a free note analysis based on your individual situation.

Fortunately it is easy to obtain a free evaluation in 3 easy steps:

Step 1 – Gather Copies of Documents

The first step is to gather copies of the documents. The primary documents utilized in the quoting process are:

• Settlement Statement
• Mortgage (Deed of Trust, Real Estate Contract etc)
• Promissory Note, and
• Payment Record

Hopefully copies are easily accessible with the originals located in a safe deposit box or other secure location for safekeeping. If a seller later decides to sell the payments then the investor will ask for a few other documents plus the appropriate originals at closing. But for now these copies will be reviewed for an accurate quote.

Step 2 – Complete the Quote Request Worksheet

The Quote Request Worksheet, also known as a Mortgage Submission Worksheet, is a simple single page form. This worksheet summarizes the transaction with most of the information obtained from the document copies. It includes details on the property type, buyer, repayment terms, and current balance. (Please visit the Quote Request and Free Note Analysis page to print a PDF version of the worksheet or to submit online).

Step 3 – Send for Review

The third step is to submit the worksheet and the document copies to an investor for pricing. Depending on the investor this might be submitted via email, fax transmittal, or an online submission process.

Most note buyers will provide a free no obligation quote within 48-72 hours. The quote is generally good for 30 days and is subject to due diligence, which includes review of the title, appraisal, insurance, buyer’s credit, and other underwriting items. The more information an investor has up front the fewer “subject to” items they will include with the evaluation.

Click Here to Request a Free Note Analysis!

Want freedom from collecting payments for the next 10, 20, or even 30 years?

Prefer a lump sum of cash today?

If you sold property with seller financing chances are you’ve wondered about selling the real estate note. Here’s how to sell a mortgage note, trust deed, or contract in 7 easy steps.

Step #1 Request a Quote

- Just complete a short informational worksheet to receive a free no obligation quote. This can be submitted online, by fax, or over the phone.

Step #2 Provide Document Copies

- To get started note buyers like to see copies of these three documents:

• Settlement Statement
• Promissory Note
• Mortgage, Trust Deed, or Contract

It is also a good time to be sure you know where the originals are located, especially the Promissory Note, as they will be requested at closing.

Step #3 Accept Offer & Agreement

- Once an offer is accepted it will be outlined in a written agreement. In addition to stating the price, the agreement will specify conditions of closing and who pays costs.

Step #4 Note Buyer Review

- The mortgage note buyer will perform a detailed review of the transaction, known as due diligence. This includes a review of the buyer’s credit, current tax and insurance status, payer interview, and other important items. They may also request copies of additional documents including a payment history, insurance policy, and existing title report.

Step #5 Appraisal

- The note investor will order an evaluation of the current property value. This usually takes the form of a Broker’s Price Opinion (BPO) or Drive-by Appraisal. The investor wants to be sure the property value is still equal to or greater than the sales price. If the value comes in low, the note investor may present a revised offer for consideration.

Step #6 Title Search

- The title search verifies ownership of the property and the mortgage note. It saves time and money to work with any title report that might exist from the original sale date. If the title search shows money is still owed on a prior mortgage it will usually be paid from proceeds.

Step #7 Closing

- When all steps are complete the note buyer will send the final closing documents for signature. The title company is often used to handle the exchange of money for the original note and transfer documents. Funds are typically paid in the form of a wire transfer or cashier’s check. You are also encouraged to have your attorney review and advise with the closing process.

We are Here to Help!

Selling your mortgage note can be a simple process when you work with an experienced note buyer. Just take a few minutes upfront to gather your information and documents and we will handle the rest for you!

Click Here to Request a Free Note Analysis!