How To Sell A Private or Seller Financed Mortgage Note: A Step By Step Guide

Full Video Transcript

Introduction

Hi, I’m Dawn, the Senior Note Analyst and Seller Financing Note Advisor with Moxxie Asset Group.

In this video, I’m going to go over a step-by-step guide for how to sell a seller financed mortgage note.

If you are holding a seller financed or owner financed mortgage note and you’re thinking about turning those future payments into cash today, I want to walk you through exactly how that process works — from the first contact with us here at Moxxie Asset Group to the money hitting your bank account.

Step 1: The Free Note Review

It all starts with a simple conversation. You share the basics of your note, either by submitting our free note review form on our website or by giving us a call.

We collect basic information about the note, including the property address, how much is still owed, the interest rate, the down payment, the monthly payment amount, how long the borrower has been paying, and whether all payments are current. The more information you’re able to give us, the closer our offer will be to the final sales price of your note.

You don’t need every document in hand yet. At this stage of the note sale, there is no fee, no application, and no obligation. Our team usually responds within one to two business days of you submitting an online free note review form or calling us with your note details.

Step 2: Your Written Offer

Once we have reviewed your note, we put together a formal written offer. A few things that shape that offer are the borrower’s assumed credit, how much they put down, their payment history, the remaining balance, the interest rate, and a few other note risk factors.

You’ll typically have an offer in hand within about a week, and there’s no cost either way if you decide not to move forward.

Step 3: Documents

Once you accept our offer, we will request copies of your documents that will verify and support the information you gave us during the free note review.

Step 4: Due Diligence

After we receive all requested documents and we have a complete file on your note, we move into the due diligence phase. This usually takes about one to two weeks after we have received all of your complete documentation.

This is where everything gets formally verified: the note documents, a title search to make sure everything is clear on the title of the property, the homeowner’s insurance verification, and a property valuation.

Your Borrower’s Credit Report

One thing worth knowing upfront, because it surprises people: as part of this due diligence process, we do pull your borrower’s credit report. This is standard, and it’s allowed by federal law.

The borrower does not need to know about this or give permission, and they cannot block the note sale or the credit review. This is a routine part of every note buying process, not something unusual to your particular situation. Again, you don’t need to notify the borrower before this step happens.

Step 5: Closing

Once due diligence clears, a title company or closing attorney prepares the paperwork to transfer the ownership of the note. They also prepare the closing documents. You sign, often electronically.

Around this time, your borrower will get a formal notice that the note has been sold. This is required by federal law, but nothing about their loan changes — the same rate, the same payment, the same schedule. It’s just a notification of where they should now send their payments: the payment address of the note buyer, who is now the new note owner.

We typically cover all of the normal closing transaction costs, so there is no cost to you for these normal closing transactions.

Step 6: Funding

Once everything is signed and recorded, your funds are wired directly to your account from the closing attorney or title company, usually within a day or two.

Start to finish, most well-organized note sellers with fully documented notes close in about 3 to 5 weeks. The faster you’re able to get us all of the required documentation we request from you, the sooner we can close and get the cash into your account.

Full Sale or Partial Sale

One more thing worth knowing early: you don’t have to sell the whole note. A lot of people don’t realize this.

A full note sale gets you the largest lump sum of cash and a clean break from note ownership. A partial note sale lets you get cash now for a set number of future payments, and the note comes back to you once those payments are paid to the note buyer. Both follow the same process.

We’ll walk you through which makes the most sense for your individual situation.

Get a Free Note Review

If you have a note and you want to know what this would actually look like for you, we offer our free, no-obligation note review on our website, or you can call us directly to discuss the details in person if that makes you more comfortable. You can reach out anytime. Our phone number is 954-466-7111.

Thank you, and I hope this has helped you discover the steps in selling your privately owned seller financed mortgage note.