Nine Steps to Closing a Real Estate Note Sale

Sell My Mortgage Note, Trust Deed, Land Contract, or Contract For Deed

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 real estate note, trust deed, or contract in 9 easy steps.

Step #1 – Request an Offer for your note

Just complete a short informational form to receive a free no obligation offer on your real estate note. This can be submitted online, by fax, or over the phone. To get started we need your contact info and a little about your note.

Step #2 – Provide Document Copies

To get started note buyers like to see copies of these three documents and a brief statement about your borrowers.

Settlement Statement

Promissory Note

Deed of Trust, or Contract

This 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 – Story about the borrower

i.e. – Borrower is a husband and wife with two children in middle school, the husband works for UPS and has been there for 5 years. The wife is a nurse and had been at her job for 2 years. The borrowers are current on their note as wells as taxes and insurance. They make their monthly payment by check and write in memo field what the payment is for month …etc.)

Step #4 – What is the property address?

Step #5 – 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.

Step #6 – Note Buyer Analysis

The real estate 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 #7 – Valuation of the Property

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 #8 – 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 seller’s proceeds.

Step #9 – Closing

When all steps are complete the note buyer will send the final closing documents for signature. A title company an attorney’s office 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.

The Texas Note Company is Here to Help!

Our goal is to provide customers with a high level of professionalism and service and take all the necessary steps to ensure that your note sale is handled in the correct manner. The intention of The Texas Note Company is to be straight and upfront with you the customer and provide options for the best possible price for all or part of your mortgage note. We will help you devise a plan to determine what is best for you, a full purchase buyout or only part of your payment stream to raise the capital you need. 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!