Safety Tips for Selling Your Private Mortgage
Selling a private mortgage is a great way to turn a long-term investment into immediate cash. Instead of receiving payments every month spread out over many years, you can receive the majority of that payment at one time. However, some deals are better than others, so here are some safety tips Jerry D. Remien, President of Mortgage Buyers Inc., to ensure that you get a good deal when selling your private mortgage, or trust deed.
Never Send Original Documents To The Funding Source
You should only send your documents to a title company that is licensed and bonded at the time of closing. The actual note is just like an original bond and is worth real money, do not give it to anyone prior to receiving funds. With a promissory note, whoever is holding the note is entitled to receive those payments. If you have given the original note to someone else, you are basically stuck working with them. It would be like giving someone a 100 dollar bill and then hoping they would give it back if you needed it in the future.
Only Work With Actual Funding Sources
Anyone who can’t give you a quote over the phone at the time the information is being taken, is not an actual funding source and is a broker. Avoid working with someone who says the process will take 30 days or longer, because actual funding sources should be able to have the deal done within seven to ten days.
Watch Out For Penalties and Commissions
Don’t sign any contracts that have penalties or commissions that have to be paid in the event that the deal does not go through. A lot of these contracts have clauses which charge a 1% penalty if they can’t end up buying the note. Be sure that if they can’t fund the deal for any reason, you don’t owe them any money. Work with companies that will send the note back if they can’t go through with the deal.
Don’t Pay Upfront
There should be no upfront money paid for any reason. Do not pay for an appraisal or other upfront expenses, that is not standard or customary in the industry.
Don’t Give Out Social Security Number
Do not give out the social security number of the payer to everyone who asks for it. Only give that information out after you’ve found a funding source and signed a contract. Brokers will ask for the Social Security Number, run a credit check without a contract, and that check will hurt then hurt the payers’ credit score. If the number was given out to ten brokers that all ran credit checks, that would greatly hurt the credit score and could make the deal more difficult to complete.
For further questions or if you are interested in getting a lump sum for your mortgage note, contact Mortgage Buyers, Inc. toll free at 800-949-0888