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Investor quotes will also be contingent on:
Satisfactory credit of payor (based on analysis of personal credit history from credit reporting agency) Verification that property currently appraises at or above its stated value (based on drive-by appraisal) Verification that title is free of defects (via updated mortgagee's title policy) =======================================
The next thing that needs to be understood is way purchases can structured and how they affect payout options.
Below you will find typical payout options:
Full Purchase Option - The investor buys entire note. This alleviates seller of responsibility to collect payments in future and to be completely done with note all at once.
Straight Partial - The investor purchases a predetermined number of payments in order to meet seller's cash requirements.
After last payment of that predetermined term ends, balance on note reverts back to seller.
Reverse Partial - The seller receives a lump sum and continues to receive full payment amount for a specified period of time.
This solution is appropriate when seller needs a large amount of cash at closing but also wants to receive monthly payments for a while.
Split Payment - The investor purchases half of seller's monthly payment; seller continues to receive income from other half.
Balloon Only - The investor purchases only balloon due at predetermined date on promissory note.
This alternative works in situations where seller needs some cash at closing but doesn't want to wait 30 years to collect balance.
Once again. It's that simple.
Now all you need are forms to submit your note information to a note investor and Direct Access to note investors waiting to buy them.
Where to go from here...
In addition to understanding these simple basics, you now need to decide whether you wish to use services of a broker or whether you'd rather handle it yourself.
Up until now, I would have always recommended a broker.
Brokers are in know as it relates to "who" is buying notes and paying fair prices for them.
Also, brokers can submit your notes to these buying parties on your behalf.....saving you time.
Knowing what I know today about how people get ripped off by brokers, I no longer recommend going this route.
That kind of things brings notoriety on profession.
Please don't misunderstand, not all brokers are bad. I have published an article called 'Picking The Right Broker', you can access it at: www.mortgagenotecash.com/TheRightBroker.htm =======================================
Now that you know what factors determine value of your note and what typical payout options are, I strongly recommend selling your note yourself....
because, even though using a broker saves you time, it does not save you money......nor is it supposed to.
We have created what we call Direct Access Directory and it gives you same contact information brokers use to place your note with a new buyer.
Why not find and pick your own buyer? It'll save you thousands on fees you would otherwise have never seen.
So, if you are ready to save hundreds or even thousands of dollars bypassing note broker fees and dealing with actual note investors directly, you need to get your copy of our Direct Access Directory.
For more information about directory, go to: www.mortgagenotecash.com/directaccess.htm
Frederick Webb is a Certified Cash Flow Consultant and is President of Webb Funding Group, a small debt brokerage firm he runs with his wife, Kashita Webb.
For more information, visit their site: www.mortgagenotecash.com