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Many private mortgage note owners don’t realize the options they have with their private mortgage or Trust Deed. As I get many questions about the process of selling a mortgage note or selling a trust deed, I have put together a list of the most asked Frequently Asked Questions that may help.

Below are FAQs and answers that I receive regularly:

1. Why would I want to sell my note? – The two biggest pluses of selling a note are a) tapping the cash now for critical investments or unexpected expenses and b) Eliminating the irritations of managing the borrower’s payments, etc.

2. Is it possible to sell a portion of my mortgage note? Absolutely.

3. Can you explain the determining factors for how much I will get for my private mortgage note? There are five key elements a Normal 0 Mortgage Buyer looks at. They are: the amount of equity the borrower has in the property, how long the borrower has been paying on the mortgage, the rate of interest on the note, the amount of time left on the mortgage and lastly the credit scores of the borrower.

4. Will it be necessary to have an appraisal done on the home? Yes to determine the LTV of the security. Occassionally, depending on the housing market, a Real Estate Broker’s opinion will be sufficient.

5. Will you check the buyer’s credit? Yes, it is a key element in calculating the amount of the payment for your owner financed note.

6. Do I have to inform the borrower I am selling the note? Yes. That is the law.

7. How do I know if the mortgage note or deed of trust allows me to Normal 0 sell my note? Just look at the executed note but every mortgage I’ve reviewed allows for the sale of the note. It is standard in most mortgage documents.

8. Can I Normal 0 sell deed of trust just like a private mortgage? the process is the same.

9. I would like to sell my note for some cash but I am concerned with losing all the monthly income? Not to worry. Most mortgage buyers can make a partial purchase of your private mortgage for only the amount you need.

10. Is there a minimum note amount note investors will purchase? Our minimum is $30,000.

And Lastly, don’t make the assumption you can’t get the amount you want from selling your mortgage or trust deed. There are a lot of ways to structure a mortgage note sale so as to accomplish your financial goals. The key, however is to tell the mortgage buyer precisely what your goals are. That way they can structure the note purchase to exactly fit your needs.