Thursday, January 10, 2008

You Can Get Cash For Your Real Estate Loan

By Scott Patton

Many note holders are hanging on to small monthly payments not even knowing that they could get cash right now for their real estate mortgage that they are secured to for how ever many years.

Everybody sees these signs at a home property, "For Sale By Owner". If this is you and you sold your property receiving monthly payments, You can cash out! This is done by selling your promissory note and yes you do have one if the above example is you.

Note buyers will offer you a discounted cash pay out for the balance of your note.

Selling off the balance of your note for cash happens pretty much the same way as when you bought and sold your property but with much less paperwork involved.

A decent real estate buyer will cover closing costs and let you pick an escrow service of your choice to close the deal and sending you your discounted cash out.

You can choose the same title company or escrow service that you use right now to collect your payments. This way the current property owner may not even know that he now is paying a new note holder.

So many clients of mine ask me what happens to the actual person that bought the property and I tell them that they still are the actual property owner so they still own the home and live there unless of coarse if they default on payments to the trust deed. This does happen often and is the reason why cashing out of your note can be a great option.

There are many reasons that a real estate note holder wants to cash out. The number one reason that I hear the most is the fear of the property buyer not making payments and putting the property in for-closer and back on your lap to deal with while not receiving your income. This is not an uncommon problem when a property was a loan made as for sale by owner. So as you see, you do not have to hold on to your note for 15 or 30 years collecting small monthly payments. You can cash out now!

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