From being a note matching specialist as long as I have,
I find many note holders do not even know that they can cash out
instead of receiving monthly payments worying if the buyer of
their property goes into default or not. The options are out there
once the seller of the property realizes it.
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.
What about the actual property owner that bought my house?
What happens to them? Those are questions that I hear often and
the answer is nothing happens to them. They still own the actual
property and the payments get forwarded from the escrow or title
company the new owner of the note instead of you. If the escrow
or title company is different from your current then the home owner
will get the proper information sent to them as well. Normally
this information is sent to them anyways.
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!
Posted by Scott Patton 