l was wondering if I was in a situation where I took on owner financing to sell one of my properties. How could I sell the loan or can I sell the loan? And where should I look or go if I can?
If you sell with OF'ing then you would have created a note for the person you sold to. That note is then eligible to be sold...and yes there are people that buy those. Most are going to want it seasoned. The typical seasoning was about 6 months, not really sure what the market place is looking for now, but I'm sure each individual note buyer is going to have their own criteria.
Also, you don't have to sell the entire note..for instance, your note is for 360 months (typical 30 yr mortgage note) you can sell 10 years worth of pymnts then after the 10 yrs are up you would then start getting the monthly pymnts back to you again.
There will be plenty of note buyers mailing you offers to purchase your note. They will pull your name off the deed of trust in the public records.
Most owner financed notes purchased are partials as Scott Wagoner explained. It is very difficult to sell the entire note for close to the current balance. Note investors will want discounted yields of 10% on up depending on the property and borrower. Lower yields are possible if you find buyer who easily qualifies for a bank loan. Something I rarely see in seller financed loans.
If Dodd Frank applies in your situation you will need an RMLO and servicer. If not, you should still have an attorney draw your docs and close through escrow. Buying a lenders title policy at closing will save you some costs if you decide to sell you note in the future.
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