All Forum Posts by: Will W.

Sorry to be so confusing. To clarify, I sold my house for 650k to the buyer, ie the borrower. I paid off my mortgage at that time with cash from the buyer. The remaining amount of the mortgage is the balance after the buyer paid the equivalent of my mortgage in cash, and the buyer took on the remaining balance of the sale price as a note to me. In other words, I paid off my mortgage and instead of walking away with the money leftover from the home sale, I conveted that cash into a note and have been making interest off of said note.

This is even a better deal for the note buyer, right?

Thank you for the responses so far. To give you more info... if this helps anyone...

I am the lender, the person who bought the house from me is the borrower. I funded the deal with cash from the sale of my personal home.

The mortgage or loan was in the amount of 335,000.00, at this point we are 28 months in, with a monthly payment of 3,357.37. The term of the loan is ten years at a fixed rate. 28,000.00 has been paid to me in interest via these monthly payments that also include payment toward the principal. The principal balance is now around 260,000.00

So when I sell this mortgage to a note buyer, and he pays me say 220k for it, ie the principal balance at that time, does that 220k get taxed? I am putting my money back into the bank and out of this note, so to speak.

Closing and broker costs will be paid by the note buyer too.

I am taking a 40k loss on the note because I am taking less than what the note is worth. Sorry not 30 tp clarify. Do you all think that is a good offer on the note too? 220k on a 260k note at a 4% rate?

thank you so much for your replies, thety are appreciated!

Hello and thanks ahead of time for any answers you can share!

I hold a first mortgage note on a single family home. When I go to sell it to a broker, do I have to pay taxes on the sale? The note is 3 years in to a ten year contract, and I will be receiving about 30k less than what the note is worth at this time for the buyout of the note.