Real Estate Blog

6 Reasons to Sell your Mortgage Note

If you have a mortgage note, then that means, as an independent seller, you financed the property to the buyer by yourself, meaning that the mortgage is being paid directly to you. This means that you’re collecting and keeping track of payments, because you’re basically the bank in this case. You’re giving your property in exchange for periodical compensation, rather than receiving all it is worth up front. Thanks to the interest rates, you’ll end up with more in the end, but it’s still time consuming. If you no longer want to be entrusted with the duty of acting as the bank, or would like money faster, then you can look to American Equity Funding to buy that mortgage note. There are a lot of reasons people will sell that mortgage note, and you may not realize that you’re in those situations that would call for it.

Putting the Money into Other Property Projects

One thing you can do, is get that lump sum from a buy-out of your mortgage note, and put it into a new home. Then you’re still in the market and have a new project to work on. You could also use this money for improving a property you already have. Or multiple properties, if you want to spread that money as far as you can. You can look to these simple improvements to help with finding those.

Investing in Other Places

One thing to know about investing is that the more money you’re putting in, then the more money you’ll be gaining if you’re doing it right. But also, the more money you have to spread around and diversify that portfolio with, the better rate of success you’ll have. The huge lump sum you could get from selling your mortgage note could prove to make you more money than you would think with some smart investing.

Increasing the Amount, you Have Saved

Having a lot of savings is always good, because you never know what could happen. If you have all that money in a savings account, then you’re prepared. You also may have a savings goal to get to so that you can buy a new property or just something huge that you’ve been wanting, and selling your mortgage note might get you more money than you would think, which could also be enough to get you to that goal.


Going off that, you could already be in that emergency. You may think that you won’t be getting enough to offset those medical bills or huge debts you have that seemed to pop out of nowhere, but selling your mortgage note could be the answer you need. With American Equity Funding, they can give you a free quote which means you can start figuring the numbers and find out if this option will be the one that will dig you out of the hole.

Getting Rid of the Responsibility of Managing your Mortgage Note

Playing banker isn’t always easy. You’ve got to make sure that your buyer is on time and able to pay up to the financing agreed upon. It’s hard work and sometimes you need to be rough with it. A lot of people find out once they’re in that they’re in over their head with trying to keep up on all the management, which is okay. You can get rid of the note and just run with the money. If it’s more on the situational side though, you can sell the note for a period. You can sell off 36 or 48 months, meaning that the buyer of the note will be collecting for those months, and you’ll walk away with a lump sum that’s fair according the period. After that period, you’ll start collecting from the mortgage again. Meaning that you don’t have to give it up forever.

Getting into a Safer Investment

You may also be worried about how well this will pay off. Maybe the people you have sold to aren’t going to be on time or just flat out won’t be able to keep up at all. Selling off the mortgage means you can move that money to a better investment such as buying another property and getting a better mortgage note with new buyers. Being an individual and having to foreclose by yourself is very hard and will put you in some financial dead ends, but it’s easier for those who have the financial sense to clean up those situations and deal with the hits.

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