Private Mortgage Notes FAQ's

M & M Funding Solutions

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The following was designed to answer questions commonly asked by people considering the option of selling their payments. It also provides important information on maintaining the value of your note.

What is a residential note?
This type of note is created with the sale of a personal residence. Depending on the State the property is located, it could be called a mortgage, Deed of Trust or Land Contract.

What type of properties qualify?
Residential properties
Houses
Townhouses
Condominiums
1-4 Family Units

What is an appraisal?

A note appraisal reflects the current market value of your payments similar to what a real estate appraisal provides for real property. Frequently referred to as a "quote", it shows what your future payments are worth in cash dollars today. we recommend you have your note evaluated once a year.

How is the value of a note determined?

The value of a note is affected by the down payment, interest rate, payment amount and term as well as, the buyer's credit rating and payment history. The type, condition and value of the property also impact the value of your note.

The time value of money, which makes payments due now more valuable than payments due in 20 to 30 years, also plays a role in the evaluation process. Generally, due to inflation, money in your pocket today is worth more now than later. All of these elements will be taken into consideration in determining the current value of your note.

How do I maintain the value of my note?

Many of the items that affect the value of your note were determined at the time the property was sold. However, keeping good records of the payments received and requiring the buyer to provide annual proof of current taxes and property insurance will help maintain the value of your important asset.

Can I sell all or part of my note?

We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.

Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your needs.

Why is my note worth more now than ever before?

With favorable interest rates and new buying guidelines, investors are able to pay more now than ever before.

How will selling my note affect the payor?

The payor experiences no change in the way the payments are structured. The only change will be to whom and where the payments are mailed.

How do I get started?

To start the process of selling your note to us, we request copies of the documents that were originated at the time of your sale:

Note and deed of trust, mortgage or contract
Closing statement
Pay history and current balance
Previous title insurance policy
Current hazard insurance policy

We will then give you a firm offer, subject to the standard title, appraisal, and buyer's credit review. Once under contract, you will receive your cash as soon as all of the documentation can be obtained. This typically takes as little as 10-15 business days.

Why should I consider using your company?

We pride ourselves on:

Quick Closings
Excellent customer service
Competitive quotes
Providing customized options
Strong financial backing
Over a decade of experience
Flexibility on all note purchases
Confidentiality with all transactions
Credibility in the industry

Will I need to Attend the Closing?

Not necessarily. We can close the transaction by sending you a closing package by overnight delivery along with easy to follow instructions.

Why should I sell my real estate note?
Peace of Mind

Usually a contract is acquire in lieu of the cash actually desired during a real estate sale. If retained long enough, many contracts will eventually pay off. However, by selling all of part of a mortgage, you will never again have to worry about:

Collecting the payments
Default and Foreclosure
Destruction/devaluation of the property
Federal Income Tax reporting requirements
Bankruptcy of the payor
Divorce or death of the payor
Abandonment of the property
Deficiency judgments
IRS tax liens/other liens against the payor
Assumption of your note by another payor

What are some common reasons people sell their notes?

To pay off debts with a higher interest rate
To pay unexpected debts such as hospital bills
To pay for tuition, vacations or new cars
To settle estates or divorces
To relieve bookkeeping and collection burdens
To invest in a business, stocks, real estate or other more profitable venture
Tired of collecting small monthly payments and want to enjoy the cash now
Did not want to carry the note in the first place

At M&M Funding Solutions, we provide top rate service combined with the best prices available!

Call us today for a FREE, no obligation note appraisal.

Phone: (586) 566-6914
E-mail: moneemike@aol.com