Note FAQ

Why Owner Financing +

Owner financing is on the rise with more sellers agreeing to accept payments from buyers. There are many reasons people agree to take back a note, deed of trust, mortgage or contract including:

• Quick sale of the property
• Monthly income from the note
• No hassles of bank financing (fees, delays, and strict underwriting)
• More qualified buyers
• Property is hard to finance

Why Would I Sell My Mortgage Note? +

Circumstances change and many sellers would prefer cash today rather than small payments that trickle in each month. Here are just a few reasons people have sold their note payments 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…

What is a Note Appraisal? +

A note appraisal reflects the current market value of your payments similar to what a real estate appraisal provides for real property. It shows what your future payments are worth in cash dollars today and is sometimes referred to as a “note analysis” or “quote”.

We recommend you have your note evaluated once a year as pricing may change based on market conditions.

You can request an appraisal by filling out this form.

Can I Sell All or Part of My Note? +

We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.

Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your needs.

How is the Value of the Note Determined? +

The value of a note is affected by:

• down payment
• interest rate
• payment amount
• term
• buyer’s credit rating
• payment history

The type, condition, and value of the property also impact the value of your note.

The time value of money, which makes payments due now more valuable than payments due in 20 to 30 years, also plays a role in the evaluation process. Generally, due to inflation, money in your pocket today is worth more now than later. All of these elements will be taken into consideration in determining the current value of your note.

How Do I Maintain the Value of the Note? +

Many of the items that affect the value of your note were determined at the time the property was sold. However, there are three things that you can do now to make your note more valuable:

• keep good records and copies of the payments received
• obtain a copy of the property insurance policy from the buyer each year
• verify the property taxes are paid when they come due (usually twice a year).

This will help maintain the value of your important asset and avoid any unpleasant surprises.

How Do I Get Started? +

The first step is to obtain a quote using our online form or by calling us at (909)626-0726. We also request copies of the documents relating to your transaction:

• Note and Mortgage (Deed of Trust or Contract)
• Closing statement
• Buyer information
• Pay history and current balance
• Previous title insurance policy
• Current hazard insurance policy

We will then provide you an offer subject to the standard title, appraisal, and buyer’s credit review. Once under contract, you will receive your cash as soon as all of the documentation can be obtained. This typically takes as little as 10-15 working days.