Ben started the company with a vision to provide one of the best commercial investment services to private as well as national investors in the city, and facilitate easy selling of mortgage notes in town. While most of the people think mortgage selling is a tedious task, BGK strives to make the whole selling process as easy as a piece of cake for the sellers as well as the buyers. All the real estate agents at BGK excel in buying and selling of mortgage notes and also help investors in shortlisting lucrative options for residential and commercial property investments.

We at BGK focus centrally on customer satisfaction and have successfully managed to create a big clientele of happy patrons by offering them the following benefits-

• Quick Closings
• No Out of Pocket Expenses to Note Seller
• Competitive Top Dollar Pricing
• Strong Financial Backing
• Flexible Note Buying Programs Nationwide
• Customized Purchase Option in Writing
• Fair Business Dealings

Besides providing hassle-free dealing to all our clients, we also help them with timely analysis of their mortgage note and know how to make it more valuable. For instants, keeping a fine record and copies of all the payments received or obtaining the timely copy of property insurance policy from the buyer can help in increasing the current value or worth of your mortgage note. Another major concern resolved by BGK is the full or partial selling of the mortgage note; we purchase both, all or part of your remaining payments. It helps you to get a lump sum amount in a single shot that you can use for multiple purposes [solving any financial crisis or invest in commercial or residential property]. With best of our resources and manpower, we strive to provide you hassle-free dealings in California.

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.

Increase the value with payment histories!

Keeping an accurate record of the payments received on a mortgage note is essential for knowing how much the buyer still owes.  This also establishes a record of their payment habits – with an added benefit.

The value of a note can be improved by presenting note buyers a verifiable payment history!

There are two main ways to keep track of payments on seller-financed mortgage notes: 1) outside serviced, or 2) seller direct.

Professional Mortgage Note Servicing

The first and easiest is to let a professional handle it. The payments are made to a third party servicing agent that keeps track of the balance and sends the money along to the seller. They will also send out the annual 1098 Mortgage Interest Statements and can hold original documents in safe keeping.

The DIY Approach to Collecting Payments

If a seller chooses the “Do-It-Yourself”’ method over a third party pro they will need to follow these steps:

1. Place original note and other original documents in a safe deposit box.

2. Make a copy of each check or money ordered received. Accepting cash is not recommended since it is hard to verify the payment history without a paper trail.

3. Deposit the payment and keep a copy of the bank record of deposit.  It is best to deposit each payment separately rather than combining with other checks.

4. Create a ledger or spreadsheet reflecting the date and amount of payments received.

5. Calculate the amount applied to interest, principal, late fees (if any), and the resulting principal balance. An amortization schedule or financial calculator can be helpful. Once calculated, record in the ledger.

6. Send out an annual statement to the buyer or payer along with the IRS1098 Mortgage Interest Statement.

7. Verify the real estate taxes and property insurance are being kept current. Consider establishing a tax and insurance escrow where the buyer pays 1/12th of the annual amount into a reserve account each month.

8. Send collection letters as necessary for late payments, lapsed insurance, or delinquent real estate taxes.

Why Note Buyers Want Payment Histories

When an investor agrees to purchase a note they will request a payment history. A verifiable payment history can improve the value of a note as it provides proof of timely payments. A payment history is considered verified when it is either provided by a third party or is backed up by the documents and records outlined above.

Unfortunately many sellers fail to keep track of the payments received. When they go to sell the note, contract, or trust deed they try to recreate the history from memory. Without any proof of payments received, a note buyer has to go on faith. Sometimes a payment history affidavit can substitute for a payment record but it still doesn’t add the value of verifiable proof.

Protect the value of your mortgage note! Set up a payment tracking method today.

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!