5 REASONS TO CONSIDER SELLING YOUR NOTE NOW

Think about your past. Has everything gone as you planned that it would? Have there been twists and turns that have defined the ways that you think about things now?

In reality, life is very unpredictable, and so is the value of your mortgage note. Sadly enough, there are far more negative things that can affect the value of your property between now and the time when your mortgage balance is finally paid off. If you’ve been tempted to sell your note early, but were talked out of it for some reason, you’re in the right place.

We’ll show you 5 reasons to consider selling your note now to make the most out of your investment in consideration of your future:

1. Your balance now is the highest that your house will ever be valued.

While your note balance decreases, so does the cumulative pay price, and you’re typically better off getting the chunk of cash you want now, despite what lenders have probably told you. In reality, you’ll get the best quote on your property when your balance is higher, which is why it’s generally better to sell your note for cash now (with the remaining balance in tact rather than a whole note sell later on.

2. Inflation will inevitably make your home worth less over time.

The value of the dollar is going to go down- statistically. You should expect the value of your house to dwindle, even in the unlikely occurrence of some fantastic economic upturn (we think you’ll agree that it’s unlikely). Inflation is almost guaranteed as the Federal Reserve resorts to printing more money.

3. Sometimes it’s impossible to foresee financial difficulty and possibly defaulting.

Even if you’ve got a stable job, good credit history, pay history, healthy and saved money, there’s always a chance of circumstances (out of your control) that could drastically affect your ability to make timely payments, and if you default, it’s unlikely you’ll be able to sell when you want.

4. Your property could decrease in value, more than you’d think.

Trends have said that real estate is back on the upswing in late 2015, but the location and condition of your home affect the price more than anything else. Your note loan gives your home more selling power, because the bank has a set “price” for your home. As the property value decreases so does the loan-to-value ratings.

5. Changes to buying status and criteria could ruin your chances to sell.

Smart sellers never count their chickens before they hatch, because brokers are constantly changing criteria and making new deals. Sells today don’t necessarily equate to sells at a later date, especially in changing markets.

Don’t get caught in a loser’s market. Take our 5 reasons to consider selling your note now to heart; and make the smart decision to secure your financial future NOW and get the home that you really want.

http://nationwidesecuredcapital.com/Sell-My-Note/selling-your-note/

KNOW WHEN TO SELL YOUR NOTE

The old adage of knowing when to hold and knowing when to fold is even more true when it comes to selling your mortgage note. In fact, there are a huge number of perspective sellers who have no idea that they haven’t got to sell the total today, and we’re finding more and more advantages associated with holding/retaining part of your note.

When it comes to your mortgage note, sometimes it just doesn’t make sense to sell the whole thing, or it’s just not a viable, safe option. It’s important to realize that your home is your biggest investment, and as such, when you’re not able to sell your note at the price that you want, you’re set to lose a sizable chunk of money via your houses depreciation values. More often than not, because of the diminishing rates of return on homes, most buyers will only purchase full notes with large amounts of equity.

You’ll have your work cut out for you to determine how to best interest a potential buyer to determine the value of your home (through a loan to value ratio or LTV). This works by simply dividing what your note is worth by the value of the property. When you’re unsure, use your sales price as an estimate to get a ball park estimate.

Here’s an easy example of a loan to value ratio equation:

Your Property Value: $200,000/ Your Remaining Balance: $100,000 = LTV of 50%

When it comes down to a small number like the one above, you’ll have a great chance to sell the property. Most buyers will purchase a full when the LTV when the value is below 70% of the value. Most are looking for at least a 30% equity margin, proving that you’re invested in your home to use against the risk of foreclosure.

When it comes down to it, generally your mortgage notes fall well short of equity requirements, and therefore aren’t complete to sell. When you’ve got a particularly high LTV, your rate of return isn’t going to make you much money- which is when selling a partial is more important.

We’ve compiled a few Pros and Cons to help you make your decision:

Pros

• More cash in your pocket, and freedom from your note requirements
• No risk of default to the bank, giving you less management on your mortgage
• Easiest transaction process imaginable

Cons

• Bigger Discount on property value levels
• You’ll lose property retention opportunities
• Lost income, and the costs of lost interest
• Sometimes you’ll face equity restrictions

While it might not make sense to sell your whole full mortgage, it often makes more sense to use a smaller amount of cash to pay off a big bill (i.e. taxes, car payments, deferments) when you don’t want to take all of the cash out of your note, or only want to retain enough of the income to get a little cash today.

Many sellers don’t need to sell the whole note, and understand that buying partials benefits them more in the long run, so many sellers will be interested your note when you’re selling a partial for a little extra pocket cash.

http://nationwidesecuredcapital.com/Sell-My-Note/know-when-to-sell-your-note/

NOTE BUYERS VS NOTE BROKERS

Many believe that the terms “note buyer” and “note broker” are the same, and that either can be used to describe a company which buys mortgage notes in exchange for cash. However, there is a key difference which is important to understand, and it may seriously impact you if you do not.

Note brokers are like real estate brokers.It is their job to bring sellers and investors together by locating mortgage notes for sale and buyers. The broker acts as the middle man, dealing with the transaction between the investor and seller. Funding does not come from the broker. They have to find funding from either an investor or note buyer, which can increase the time it takes to sell your note.

However, despite this, there are benefits from using a broker. There are far more note brokers around than there are note buyer, so the chances are there will be one around locally.

So, what makes a note buyer different? Unlike brokers, note buyers are usually big companies that offer their services across America. A third party is not needed as buyers can get notes straight from the seller.

Take, for example, Nationwide Secured Capital. We can buy mortgage notes directly since we have our own funds. As you can imagine, there are multiple advantages of using a note buyer over a note broker.

One bonus is that transactions take place much quicker. The buyer doesn’t have to go looking for an investor to put up the funding. Another plus is the clear underwriting. Buyers will have particular guidelines which determine whether they can make a purchase and, with a note buyer, they are able to notify promptly whether they can or not.

Experience is important in this industry, and note buyers have plenty of it. You have to be a note broker before you can become a note broker, and Nationwide Secured Capitals 17+ years as a broker is invaluable experience.

As you can see, note buyers and note brokers have differences, and both have their benefits. Ultimately, you must make the decision about which you would rather use.

Contact us or click  below if you would like a note buyer to give you a quote on your note.

http://nationwidesecuredcapital.com/Sell-My-Note/note-buyers-vs-note-brokers/