The Trusted Home Buyer Logo602-456-4440

Step By Step Guide To Selling Your Mortgage Note in Phoenix

a person smiling for the camera

Martin Boonzaayer

December 4, 2019

Usually, private mortgage holders sell their note in order to deal with urgent financial needs that require a large sum of money. The reasons include paying off debt, taking care of medical bills, paying college tuition, paying legal fees, and so on. There are, in fact, no restrictions on how you can spend the money derived from selling a mortgage note. For people who need a large infusion of cash, this is often a good solution. Here, then, is a step by step guide to selling your mortgage note in Phoenix.

Get Quote

There are plenty of investment companies willing to buy your mortgage note. The one you choose will need assurance of a mortgage trust deed so that the company’s risk is backed. After you contact the company and fill out the requisite forms(s), you’ll get a quote based on the current market value.

Provide Pertinent Documents

For selling your mortgage note in Phoenix, you will need to provide copies of certain pertinent documents. These usually include the settlement statement, the promissory note, and the mortgage, trust deed, or contract. And make sure you have the originals of these documents available (especially the promissory note) because they will probably be needed at closing.

Accept Offer

The company will then provide you a written offer, which you formally accept or decline. This written offer agreement states the price and specifies the conditions of closing including who pays which costs. (Concerning costs and fees, note buying companies often provide an attorney and make sure you get a competitive rate for her services; otherwise, you could wind up paying several thousand dollars for the necessary attorney services.)

Selling your mortgage note in Phoenix then involves a series of closely related steps. These include:

Buyer review – Your mortgage note buyer has to perform a detailed due diligence review of the transaction. This includes a review of the buyer’s credit, tax, insurance status, and payer interview. The buyer review may include a request for additional documents such as payment history, insurance policy, and title report.

Appraisal – The purchasing company will next have to have the property appraised for an accurate determination of its current value. This is usually in the form of a Broker’s Price Opinion (BPO) or a drive-by appraisal. The investor just has to make sure the property’s value is equal to or greater than the sale price of the note.

Title search – The purpose of the title search is to verify that you actually own the property and the mortgage note. If the title search reveals that money is still owed on a previous mortgage, that is usually paid out of the proceeds from the mortgage note sale.

Close

After successful completion of the previous multi-tiered step in selling your mortgage note in Phoenix, the final step is closing. During this step the note buyer presents all the closing documents for signing. In many cases, the title company handles the money exchange, usually in the form of a wire transfer or cashier’s check, and document transfer involved in the closing. It’s also a good idea to have your own personal attorney present to review the closing process.

Be aware, too, that there are no constraints on the amount of the note you can sell. You can sell the entire mortgage note, a specific amount now and then receive mortgage payments again later, or a percentage of each scheduled payment. And if selling your mortgage note in Phoenix seems overly complex and more than a little confusing, don’t worry, we are here to help.

Explore more

January 25, 2023
9 Reasons Why Working in the Real Estate Industry Is So Beneficial

Real estate has been, for so long, providing a primary means of survival to humans. Being a primary sector, the demand for workers is constant. As a result, the real estate industry keeps growing, and many people want a piece of it. For instance, you can easily land real estate jobs on reputable aggregators like […]

Read More
January 25, 2023
How Does the Foreclosure Process Work?

Unfortunately, foreclosures are a regular occurrence, and many Arizona homeowners face the possible foreclosure of their homes. This article will walk you through the foreclosure process and offer some options or steps you can take to avoid foreclosure. What Is Foreclosure? Foreclosure is the legal process of a lender who attempts to recover the amount […]

Read More
September 12, 2022
US Mortgage Lenders are Going Bankrupt

Inventory of resale homes is low, and the rising interest rates are making it harder for buyers to leap into home ownership, potentially causing a surge of failures comparable to 2008. We are now seeing a rise in mortgage lenders' bankruptcies, which is troubling news for an already uncertain market.  NQM and Bankruptcies  Now there […]

Read More
September 7, 2022
Community Focus: Annual Hotshots Charity and Memorial Event

Last weekend our CEO participated in the annual "Hotshots 19" charity and memorial event to honor the 19 members of the Granite Mountain Hotshots firefighting team who lost their lives in the Yarnell Arizona fires.  As part of the local CrossFit community, Martin and his family supported this event through donations and participating in their […]

Read More
The Trusted Home Buyer Logo
Copyright © The Trusted Home Buyer
WE BUY HOUSES IN:

4.7 62 reviews