If You Do Not Own the Promissory Note You Cannot Sell It
Posted on July 31st, 2010 in Is My Promissory Note Salable?, Sell Mortgage Note | 3 Comments »
I have been receiving inquiries from several people who want to sell their promissory note (also know as a mortgage note) for cash. Since that is what I help people do, I welcome all inquiries, but before you contact me, you need to make sure the note is yours to sell.
That sounds logical, but some folks have emailed me to sell a note they are making the payments on. The note turns out to be owned by another person or a bank, so they are not in a position to sell it. That would be like me going to a car dealership and trying to trade-in your car, to buy myself a new one. It cannot happen because your car is not mine to sell. The same thing holds true with a promissory note. If you are the Payor, the Assignee, Obligor, Debtor or Mortgagor, then you are not in a position to sell the note.
If you are the Payee, the Assignor, Obligee, Creditor, or Mortgagee then you are the owner of the promissory note or trust deed and do have the right to sell it.
What Do Members of My “Find Promissory Note Buyers Network” Want to Buy?
There are numerous types of promissory notes out there. This website is specifically offering a service to notes that are backed by real estate. We will only work with the owner/s of the notes and we look for at the bare minimum 3 months of seasoning or payment history, with 6 months being better and any longer being better still.
The most appealing note to my network members is on a single family residence (SFR), with a significant down payment and interest rate of 7% or higher. It is always worth it to request a quote even if your note does not meet these criteria, since there may be a buyer in my network for almost any promissory note you own that is secured by real estate.
3 Responses
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This is both sad and funny. I think it is a sign of our times that people will do anything for money, and understanding notes is complicated. When you ask them, “Do you have a note? We will buy it”. A lot of people would say GREAT! However, for a note buyer this Obviously isn’t that bad, because you have a lead on an owner financed note sometimes. Great Post!
It just might be the opportunity that you have been waiting for to purchase sell your very own promissory note. According to the National Association of Realtors the housing market may be already starting a rebound as contracts written in August jumped and home sales have gone up in popular vacation spots.
Why buy a promissory note? Prices are very attractive right now; you have an opportunity to make a nice profit when the market rebounds and it market always does.