resell owner contract loan - possible?

Question

Hi all, while trying to find an answer to this question online, I came across Bigger Pockets forum and thought I would try my luck here.

Here's a few details: a little over a year ago I sold a house through owner contract. Recently I've decided that I would like to sell the loan, if that's allowable. The house is in Washington State, if it makes any difference, and the buyers make their payments to a contract collection company.

Any information will be greatly appreciated. Thanks all!

Brunhilda Smith · Answer

Thanks for the information, Zach. I'm not sure yet if this is something I want to do, but if I decide to, I will contact you.

Zach Schwarzmiller · Answer

You can most definitively sell your loan in Washington State. There is a group of investors who prefer to purchase notes. I used to work for an equity fund and all we did were loan sale transactions.

Brunhilda Smith · Answer

Thanks for the answer, Jon, and the contact. I didn't know what word to use to research this type of sale and therefore had no luck finding info online. Now I know to look for selling a note. Thanks!

I also didn't know that there was a difference between owner contract and owner carried mortgage, but I think it's the first one. I'll get researching now to figure out if this is something I want to do.

Jon Holdman · Answer

@Brunhilda Smith what do you mean by "owner contract"?  A owner carried mortgage?  Land contract?  Lease/option?

Yes, there is a market for notes, if that's what you mean.  These usually sell at something of a discount to the face value.  The discount will depend on the seller's credit, amount of downpayment and the value of the property relative to the note.  There are some folks who deal in this sort of instrument, @Marc Faulkner for one.  Perhaps he can give some more info.

@Marc Faulkner