Plan to Sell Your Mortgage Note – Whether You Will or Not

This article is going to sound self-interested because we buy mortgage notes, but our advice – that you should plan your seller financed note as if you'll eventually sell it – is in your best interest too. There are two big reasons to enter into seller financing with this attitude, and a few characteristics to keep in mind if you're going to follow this principle.

Why plan to sell your note? First of all, mortgage note buyers like DMO Direct Funding have the same basic interests as you. We want to buy the same secure, well-managed mortgage notes that you ought to hold. They need to be well-documented, performing notes. The better you maintain your note, the better quote you'll get.

That leads us to the second reason: You may want to sell your note! If your note is in a condition to sell you'll increase your financial portfolio's flexibility. A saleable note is effectively a potential pool of cash on hand, ready for you if any emergencies or new life goals need a jolt of cash flow.

These two factors tell you why you want a saleable note – but what is a saleable mortgage note, deed of trust or land contract? 99% of the answer is common sense. A saleable note is a performing note. It features a history or timely payments from the borrower. A saleable note is properly documented; there's no confusion about the obligations of each party, or the nature of the property. A saleable note is first lien; private individuals should avoid multiple encumbrances whenever possible. Otherwise, you’ll create confusion as multiple parties exert an interest in the property.

In short, the things that make a mortgage note easy to sell to us also act as a roadmap to your own successful investment in seller financing. Do you want to sell or investigate selling to examine your performance? Get a no obligation note quote to start.