What You Need to Sell Your Mortgage Note

Are you thinking about seller your mortgage note? By selling your mortgage note to a loan acquisition firm on the secondary market, you can receive a sizeable return on your investment. The funds you receive from selling your mortgage note can be used for essentially any purpose, and people choose to sell their note for a number of reasons. Common reasons to sell mortgage notes include paying off debt, buying a new home or vehicle, remodeling an existing home, paying for unexpected medical expenses, tuition for college, and settling a divorce or estate.

Selling your mortgage note also frees you of the burden of note management. You will no longer have to act as the bank and collect payments from the borrower or worry about the borrower neglecting payments. When you sell your note, the note buyer assumes the full risk of the note payments, while you receive the value of the note all at once.

If you want to sell your mortgage note, here are the following things you will need to submit to the loan buying firm:

• Copy of the note and a copy of the deed, land contract or mortgage, depending on the state
• Settlement statement or HUD1
• Proof of payments record, such as bank statements and cancelled checks
• Proof of Homeowners' and Fire Insurance, including the agent's name, number and policy number
• Tenant rental agreement and rental amounts, if the property is a rental
• Pictures of the property, if available
• Escrow instructions from the origination of the loan
• Title insurance policy
• Copy of the 3rd-party loan servicing agreement, if applicable

Once you submit these documents to the note buying firm, the buyer will order an appraisal and title search before clearing the sale for closing. Once you and the note buyer schedule a closing time and date to close the transaction, you can expect to receive a check or wire transfer within a several days.