Mortgage Note Buyers: What Sellers Need to Know

When a person takes out a mortgage, they have an agreement with a financial institution to pay back their loan. Sometimes, the owner of a privately held mortgage sells the mortgage note to a mortgage note buyer. When this occurs, the borrower continues to pay the same monthly mortgage payment; however, this payment goes directly to the mortgage note buyer.

Many people who sell mortgage notes are looking for a quick influx of cash while selling to a company they can trust.

It can be tough to decide when it’s the right time to sell a mortgage note and the right buyer for your situation. Here, we’ll take a look at what banks and other mortgage lenders need to consider before choosing a mortgage note buyer.

On this page, we will cover these topics: ​

Research Prospective Buyers

When you start to look into mortgage note buyers, you’ll find that you have options. You may choose to work directly with a company or private organization that purchases mortgage notes, or you may choose to work with a mortgage note broker.

No matter what you choose, be sure to carefully research any note buyer you’re considering. Read reviews and testimonials. For the best offer, eliminate the middle man and be sure you’re dealing direct with a mortgage note buyer and not a note broker.

Reliability and Experience Matter

When you’re considering working with a particular mortgage note buyer, you’ll want to ensure that they’re reliable and easy to work with. Communication is vital as you go through the process of selling a mortgage note, and it’s important that the mortgage note buyer you select provides you with the information you need in a timely fashion.

Verify that the mortgage note buyer you choose has the experience necessary to ensure a smooth transaction. Stay away from companies that are brand new to the game. You want to look for a mortgage note buyer who has a long-standing reputation of doing high-quality business.
Choose a business that can help you decide whether it’s the right time to sell your mortgage note. When talking with a potential buyer, you shouldn’t feel pressured to sell right away without understanding the offer and quote for your payments.

Reliability, trustworthiness and accreditation are important, but make sure you’re getting a great deal before you move ahead with selling a mortgage note.

Get the Details

There’s nothing wrong with asking questions when you’re choosing a mortgage note buyer. Question your potential buyers about how they determine rates for mortgage note purchases. There are several factors that can influence the offer made by a mortgage note buyer, including the borrower’s credit score, the amount of time left on the mortgage, the down payment that was made on the property, the interest rate on the remainder of the loan and the amount the borrower pays each month.

Use this information to get a sense of which mortgage note buyers are a great fit for the notes you’re willing to sell. You may even want to use different buyers for different notes. For example, one buyer may be more forgiving of borrowers who have poor credit, while others may be more accepting of properties with a lower value. Deed Street Capital evaluates each note on an individual basis and offers a fair and quick quote.

Reach Out to Deed Street Capital Today

At Deed Street Capital, we’re here to meet the needs of mortgage note sellers, and we’d love to chat with you about how our firm can provide you with a lump sum for your mortgage notes. We’re looking for sellers with mortgage notes for properties valued between $25,000 and $3 million. Contact us today for a hassle-free quote for your mortgage note.