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A lot of private note holders don’t really know the different options they have with their Mortgage Note or Deed of Trust. As I get a lot of inquiries about how to sell a mortgage note or selling a trust deed, I have come up with a list of the most asked FAQs that may be helpful.

Following are ten of the most asked questions:

1. Why would I want to sell my note? – The two biggest advantages of selling a private note are a) Accessing the cash now for higher return investments or unexpected expenses and b) Riding you of the irritations of keeping records of the borrower’s payments, etc.

2. Is it possible to sell part of my mortgage? Yes, we do partial purchases all the time.

3. What are the criteria for how much I will get for my private mortgage note? There are 5 key elements a Normal 0 Mortgage Buyer looks at. They are: the amount of equity in the home, how long the borrower has been paying on the note, the rate of interest on the note, the amount of time left on the mortgage note and finally the creditworthiness of the borrower.

4. Will an appraisal be necessary in order for you to buy my private mortgage? Yes in order to determine the LTV of the security. Sometimes, depending on the real estate market, a Real Estate Broker’s assessment will suffice.

5. Will you need to pull the borrowers credit? Yes, it is a very important component in determining the amount of the payment for your private note.

6. Do I have to tell the buyer I am going to sell the mortgage? Yes. That’s the law.

7. How can I be sure the note or deed of trust has a clause allowing me to Normal 0 sell my note? Just read the original mortgage but every mortgage I’ve reviewed allows for the sale of the note. It is standard in most mortgage agreements.

8. Can I Normal 0 sell deed of trust just like a private mortgage? the selling process is the same.

9. I wish to sell my note for some cash but I am worried about losing all the monthly income? Don’t worry. Some note buyers can make a partial purchase of your private mortgage for only the amount you are looking for.

10. Is there a minimum note amount note purchasers will purchase? Ours is $30,000.

And Finally, do not assume you can’t get the cash you want from the sale of your mortgage or deed of trust. There are a lot of ways to structure a mortgage sale in order to accomplish your goals. The key, however is to communicate to the mortgage buyer exactly what your desires are. This way they can structure the mortgage note terms to exactly fit your needs.