Why should I sell my mortgage note / income
stream?
If you enjoy receiving your periodic payments and do not
need cash, then you probably do not want or need to sell your note. But
what if you are in need of immediate cash? Many people find themselves
in a situation where a lump-sum of cash is either required or highly desirable
. . . to pay off bills, debts, taxes, divorce settlements; to start a new
business, invest in a new project, or pay for college; to buy a new house
or take a special vacation. Those who understand the present value of money
may have many reasons to sell . . . and more and more people are choosing
to take cash rather than wait for future payments. The only way some people
can sell their property, or get their asking price, is to provide all or
some owner financing. If structured properly, their brand new note can be
sold / transferred at closing so they get all their cash at closing, just
as if their buyer or property had qualified for traditional financing. For
many FSBOs, Investors and Builders . . . Temporary Seller Financing
is becoming the strategy of choice.
Is selling my mortgage note / income
stream legal?
ABSOLUTELY! It is completely legal . . . corporations and
wealthy individuals have been buying and selling mortgage notes for decades.
We work with a variety of funding sources, nationwide, who buy privately
held mortgage notes. KCC & Associates will help you find the funding
source that will pay you the maximum for your note / income stream.
Is selling my note like getting a loan?
NO! This is definitely not a loan. You would, in fact,
be selling the entire note (or a portion of it) and there is no recourse
to you for any reason.
What happens if the mortgage payer
defaults or is late making payments?
Since this is not a loan, the funding source assumes all
risk for the entire note . . . or that portion you sell to them. You have
absolutely no responsibility or liability.
What costs or fees would I, the seller,
have?
In many cases, NONE! Depending on the quality of the note,
most costs, including any legal fees, are paid by KCC & Associates
or the funding source. There may be no out-of-pocket costs to you, the
mortgage seller, other than providing a title policy and current appraisal.
The $$ amount offered and accepted by you, for your note, is the actual
CASH amount you will receive at closing.
How long does it take to do the deal
and receive the lump-sum cash?
The whole process is very simple and straight forward and
once all the necessary documents have been examined, prepared, signed
and are in place, the transaction is concluded. This usually takes between
two - three weeks, sometimes, even faster. On the day of closing, the
funding source, through the title company, will provide your lump-sum
payment directly to you, per your instructions to them.
Will this also work with brand new notes?
Absolutely! This is known as a "Simultaneous Close" and
is one of the fastest ways to sell a property and still get all your cash
at closing! To learn more about this Temporary Owner Financing
approach to selling your property . . . review the various links on this
web site . . . and call us to discuss your needs.
Should I talk to my attorney and CPA?
Of course! You should talk to anyone you feel comfortable
with . . . including your CPA, Tax Advisor, Banker, and Attorney. Feel
free to have them contact us if they have any questions or concerns.