WHAT’S MY NOTE WORTH AND WHY SHOULD I SELL?
We represent Delta Mortgage and Funding, a private mortgage investment company. We specialize in buying and selling mortgages held by individuals rather than your traditional lending institutions such as banks or mortgage companies. A private mortgage is created when a home owner sells their home and takes back the note ( also called seller financing or seller carryback financing. Instead of receiving a cash payment the seller receives their payment in monthly installments until the loan is paid in full. In a sense the seller plays the role of the Banker. Owner financing can be a win win situation for all parties involved. The seller establishes a secure income for many years. The buyer gets financing with fewer restrictions and loan requirements, and the Real Estate Agent makes a sale because of flexible terms.
When I sell my mortgage note how much will the discount be?
There is not a set discount rate. Without a proper evaluation of the note it is impossible to know the amount of discount or say what we will pay for your note. There are three main items that we look at to determine the value of a note. When your local banker originates a loan, several factors are considered, credit score, length of employment, value of the home, household income, etc. We have similar criteria that we must evaluate before we purchase an existing mortgage note. We look at the credit score, the payment history, the property value, and the terms of the existing note. A note that is well seasoned will be discounted less than a note that is only a couple of months old. A note with more protective equity will be discounted less than a note with no equity or very little equity. We must also consider the time value of money. A cash payout today may be worth more than receiving your money over time.