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Frequently Asked
Questions . . .
Why should I sell my mortgage note / income stream?
Is selling my mortgage note / income stream legal?
Is selling my note like getting a loan?
What happens if the mortgage payer defaults or is late making
payments?
What costs or fees would I, the seller, have?
How long does it take to do the deal and receive the lump-sum
cash?
Will this also work with brand new notes?
Should I talk to my attorney and CPA?
Factoring
Frequently Asked
Questions
Why should I sell my mortgage note / income stream?
If you enjoy receiving your periodic payments and do not need cash,
then you probably do not want or need to sell your note. But what if
you are in need of immediate cash? Many people find themselves in a
situation where a lump-sum of cash is either required or highly
desirable . . . to pay off bills, debts, taxes, divorce settlements;
to start a new business, invest in a new project, or pay for
college; to buy a new house or take a special vacation. Those who
understand the present value of money may have many reasons to sell
. . . and more and more people are choosing to take cash rather than
wait for future payments. The only way some people can sell their
property, or get their asking price, is to provide all or some owner
financing. If structured properly, their brand new note can be sold
/ transferred at closing so they get all their cash at closing, just
as if their buyer or property had qualified for traditional
financing. For many FSBOs, Investors and Builders . . . Temporary
Seller Financing is becoming the strategy of choice.
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Is selling my mortgage note / income stream legal?
It is completely legal. Corporations and wealthy individuals have
been buying and selling mortgage notes for decades. We work with a
variety of funding sources, nationwide, who are buy privately held
mortgage notes. PFS will help you find the funding source that will
pay you the maximum for your note / income stream.
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Is selling my note like getting a loan?
No. This is definitely not a loan. You would, in fact, be selling
the entire note (or a portion of it) and there is no recourse to you
for any reason.
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What happens if the mortgage payer defaults or is late making
payments?
Since this is not a loan, the funding source assumes all risk for
the entire note . . . or that portion you sell to them. You have
absolutely no responsibility or liability.
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What costs or fees would I, the seller, have?
In many cases, no fees. Depending on the quality of the note, most
costs, including any legal fees, are paid by PFS or the funding
source. There may be no out-of-pocket costs to you, the mortgage
seller, other than providing a title policy and current appraisal.
The $$ amount offered and accepted by you, for your note, is the
actual cash amount you will receive at closing.
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How long does it take to do the deal and receive the lump-sum
cash?
The whole process is very simple and straight forward and once all
the necessary documents have been examined, prepared, signed and are
in place, the transaction is concluded. This usually takes between
two - three weeks, sometimes, even faster. On the day of closing,
the funding source, through the title company, will provide your
lump-sum payment directly to you, per your instructions to them.
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Will this also work with brand new notes?
Absolutely! This is known as a "Simultaneous Close" and is one of
the fastest ways to sell a property and still get all your cash at
closing! To learn more about this Temporary Owner Financing approach
to selling your property . . . review the various links on this web
site . . . and call us to discuss your needs.
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Should I talk to my attorney and CPA?
Of course! You should talk to anyone you feel comfortable with . . .
including your CPA, Tax Advisor, Banker, and Attorney. Feel free to
have them contact us if they have any questions or concerns.
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