FAQ
Here you can find answers to most of your questions about selling your note. If you still can’t find the answer you are welcome to contact us
What is real estate owner financing?
Real estate owner financing refers to a transaction where the property seller acts as the lender and provides financing directly to the buyer, allowing them to make payments over time.
What is a mortgage note?
A mortgage note, also known as a promissory note, is a legal document that outlines the terms of the loan, including the amount borrowed, interest rate, repayment schedule, and other pertinent details.
How can I turn my future payments from a mortgage note into cash now?
By selling your mortgage note to a note investor, you can receive a lump sum payment upfront in exchange for the future payments you would have received over time.
Will my personal and financial information remain confidential?
Yes, trusted note investors prioritize the confidentiality and security of your information. They adhere to strict privacy policies and safeguard your data.
How long does the note purchasing process typically take?
The timeline can vary depending on several factors, such as the complexity of the transaction and the availability of required documents. On average, the process may take a few weeks to complete.
What options do I have if I decide to sell my mortgage note?
Once you decide to sell, you can choose from various options, including selling the full note, selling a partial interest, or exploring other creative solutions that suit your specific needs.
Can I sell a mortgage note that has late or defaulted payments?
Yes, it is possible to sell a mortgage note with late or defaulted payments. However, note investors typically consider such factors when valuing the note and may offer a lower purchase price.
What are the advantages of real estate owner financing for sellers?
Owner financing can attract more potential buyers, facilitate a faster sale, and provide an additional income stream through interest payments.
What are the advantages of real estate owner financing for buyers?
Buyers can benefit from more flexible financing terms, potentially bypassing traditional lenders’ strict criteria and enjoying a faster and smoother transaction process.
How do I calculate the value of my mortgage note?
The value of a mortgage note is determined by several factors, including the remaining balance, interest rate, payment history, and current market conditions. A note investor can help evaluate its value accurately.
Can I sell a mortgage note on a property that is not located ined in my state
Yes, mortgage notes on properties located outside your state can be sold. However, the process may involve additional considerations and requirements.
Can I sell a mortgage note on a property that is not yet paid off?
Yes, it is possible to sell a mortgage note even if the property is not fully paid off. Note investors can purchase full or partial interests in the note.
What happens if the borrower defaults on the mortgage note?
In the event of default, the note investor may have various options, such as pursuing legal remedies, foreclosure, or working out a modification or repayment plan with the borrower.
Can I sell a mortgage note if there is a second lien on the property?
Yes, it is possible to sell a mortgage note with a second lien. However, the presence of multiple liens may affect the note’s value and the available options for selling.
Can I sell a mortgage note if the property is vacant or in poor condition?
Yes, note investors may consider purchasing mortgage notes secured by vacant or distressed properties. However, the condition of the property can influence the note’s value and the investor’s interest.
Are there tax implications when selling a mortgage note?
Yes, selling a mortgage note may have tax implications. It is advisable to consult with a tax professional to understand the specific tax consequences based on your situation and jurisdiction.
Can I sell only a portion of my mortgage note?
Yes, note investors may be interested in purchasing a partial interest in your mortgage note, allowing you to retain some future payments while receiving a lump sum for the sold portion.
What documentation is typically required when selling a mortgage note?
Common documentation includes the mortgage note, deed of trust or mortgage, payment history, property appraisal, title report, and any relevant legal or financial documents.
Can I sell a mortgage note if the borrower has a low credit score?
Yes, note investors consider various factors beyond the borrower’s credit score when evaluating a mortgage note. A low credit score may impact the note’s value but does not necessarily disqualify it from being sold.
Can I sell a mortgage note on a commercial property?
Yes, mortgage notes secured by commercial properties can be sold. The process may involve different considerations compared to residential properties, and the note’s value can be influenced by the commercial property’s characteristics.
Can I sell a mortgage note if I'm receiving payments through an escrow account?
Yes, it is possible to sell a mortgage note even if payments are managed through an escrow account. The note investor can work with the escrow agent to ensure a smooth transition.
Can I sell a mortgage note if the borrower is in bankruptcy?
A: Selling a mortgage note when the borrower is in bankruptcy can be more complex, and it may require court approval
What might be the reason I would want to sell my mortgage note?
As we say ‘life happnes’ and numerous sellers opt for immediate cash instead of receiving monthly payments that arrive in smaller increments. Consider the following reasons individuals have for selling their note payments for a lump sum of cash:
- Retirement
- Taxes
- Another investment Opportunity
- Expensive Medical Care
- Vacation
- College Tuition
- Unexpected Financial Changes
- Peace of Mind – no more worrying if the buyer will make late payments or having to foreclose
- Accounting headaches, IRS regulations, paperwork hassles and the list goes on…
What is note evaluation or appraisal
A note appraisal assesses the present market value of your payments, similar to how a real estate appraiser determines the value of a property. It reveals the current cash value of your future payments and is occasionally referred to as a “note analysis” or a “quote”.
How will selling my note affect the payer?
The payer will not experience any change in the payment structure. The sole change will be the mailing address to which the payments are sent
How will I be paid if I decide to sell my note?
The purchase price is sent in secure and guaranteed funds, such as a cashier’s check or wire transfer, upon the receipt of the final transfer package and original documents.
To ensure the safe and secure transfer of your valuable asset, we are pleased to facilitate the transfer of funds to the title company. This enables you to exchange your original documents for the proceeds, providing you with peace of mind.
Why should I work with KARIA Investments?
We take extra pride in:
- Superior customer service
- Competitive pricing Tailored solutions to meet your needs
- Robust financial support
- Flexibility in purchasing various types of notes
- Utmost confidentiality in all transactions
- Established reputation in the industry
At KARIA Investments we provide top rate service combined with the best prices and fair market value available.