Many mortgage note or trust deed holders don’t realize the options they have with their Mortgage Note or Deed of Trust. First of all, you can sell it for all cash. Secondly, you can sell part of the note or trust deed structuring the sale in a manner that accomplishes their specific goals. As I get a lot of questions about the process of selling a mortgage note or selling a trust deed, I have put together a list of Frequently Asked Questions that may help. Some answers may surprise you. (Please note that my answers are for our company and may not be true for some note buyers.) The FAQs and answers are as follows:

1. What are the advantages of selling an owner financed mortgage? – The two biggest advantages are a) Accessing the cash now for critical investments or expenses and b) Eliminating the hassles of managing the borrower’s payments and reporting.

2. What are the criteria for how much I will receive for my private mortgage? There are 5 main factors. They are: Equity in the property, seasoning on the note, the interest rate on the note, the time left on the note and lastly the credit of the borrower.

3. Will an appraisal be necessary for me to sell my private note? Yes to determine the value of the security.

4. Will you need to check the buyer’s credit? Yes, it is a very important factor in determining the lump sum payment for your private mortgage.

5. How long does it typically take to receive my lump sum payment for my owner financed mortgage note? Typically 1 to 2 weeks for our company. I can’t speak for others.

6. Do I have to tell the buyer I’m selling the note? Yes. That’s the law.

7. How can I be sure the mortgage note has a clause allowing me to sell it? Just look at the original note or we could look at it for you but every note I’ve seen allows for the sale of the note. It’s standard in most mortgage agreements.

8. Can I sell my private mobile home mortgage? Yes, if it includes the land.

9. Can I sell a private mortgage on raw land? Yes, with or without improvements.

10. Can I sell a mortgage on a piece of commercial property? Yes.

11. What if I don’t know the credit of the borrower that I gave an owner financed mortgage? You can ask for a quote based on your best estimate and adjust (up or down) the final payment after credit is pulled.

12. Can I sell a Land Contract? Yes

13. Can I sell a Deed of Trust? Yes.

14. I would like to sell my mortgage note payments for some extra cash but I am afraid of loosing all the monthly income? Not to worry. Some note buyers (including us) can make a partial purchase of your private note for just the amount you need.

15. Is there a minimum mortgage size for home note buyers to buy? Ours is $30,000.

16. Can I sell a condo mortgage note? Yes.

Finally, don’t assume you can’t get the cash you want from the sale of your mortgage note or trust deed. There are a number of ways to structure a note sale so as to accomplish your goals. Quotes are free from most legitimate note buyers.


When it comes to selling real estate, one of the most difficult and frustrating situations for sellers is when market conditions make it nearly impossible to sell at the desired price point.

A high initial listing price might be because the seller simply has an unrealistic idea of how their house stacks up against the competition in the area, or because the owner needs to sell for a set minimum price in order to pay off their loan against the property.
With traditional property sales methods, the only way to prevent the property from sitting on the market indefinitely is to keep dropping the price. Unfortunately, this technique doesn’t always work -especially if the seller is unwilling to “discount” their house by much.
In areas flooded with homes for sale, reducing the asking price slightly will not bring the desired result. In fact, it’s common that the property will continue to sit on the market without offers, alongside the multitude of other unsold properties with similarly reduced prices.
Anyone experienced in sales understands that making your product stand out from the crowd is a critical technique for success. But if there’s too much competition offering the same attributes, the only logical way to attract the attention of serious buyers is to drop the price so that your property is a much better value than the competition.
In cases where the seller is too inflexible with their asking price, this is not a practical solution. Without an alternative strategy, the seller is forced to keep the house on the market for an extended period of time with an unrealistic asking price, hoping for the right buyer to come along. And as you know, that “Mr./Mrs. Right” might NEVER materialize!
The Seller Finance Solution
Property sellers who want to both obtain their desired price and close on the deal quickly should consider seller financing. Seller financing is a powerful tool to remedy real estate situations that otherwise look grim.
Many home sellers (and their real estate agents) do not see seller financing as a viable option. In actuality, seller financing can bring new attention to the listing and invite a different group of potential buyers – thereby opening up a unique, untapped market.
A large percentage of people throughout the country cannot get approved for bank funding to buy real estate because of their credit situation. Many of these people are still in the market to buy a house, however. The “credit-challenged” are often frustrated with the limitations of apartment living or being renters; as a result, many are willing to pay a higher price just for a chance to get seller financing and improve their quality of life.
A savvy property seller who recognizes this opportunity can salvage an unfavorable situation and turn it into a bonafide seller’s market. By using this type of creative financing, the seller could actually end up getting more than the original asking price – without resorting to the questionable strategy of patiently waiting for the “right buyer”.
Seller finance can enable homeowners to receive a favorable selling price despite bad market conditions. In addition, the real estate agent (if any) gets to close a deal and move on to other sales, while a home buyer with poor credit is able to become a home owner.

It’s one of those rare situations where everyone at the negotiating table gets what they want.
Paper Tigers
Many home sellers never consider seller financing because they don’t understand the benefits. There are also common misconceptions that it’s much too complicated to attempt to orchestrate a seller financed deal, or that there are no buyers willing to sign a private note.
Once a property seller takes the time to learn about the basic process, the advantages of offering financing instead of a lower price to sell their property become very clear. Plus, a little education about seller finance will make it apparent that drafting a secured private note is actually a very straightforward process.
The bottom line is seller financing can enable a home owner to “have their cake and eat it too”

Contact us to help you with Seller Financing notes.

If you are going to sell your note,  there are several tips you should know before you do. This post tells you how to get the most for your note from California Note Buyer, Neal Nussbaum.

As a California  note buyer, I want to share tips with other real estate investors, note sellers, sellers who have carried back paper, etc., to help them learn the best ways to get the most money for their notes and real estate when they go to sell them.

First Things First, Get Your California Real Estate Note In Writing

First things first, you should have your note in writing. This sounds simple, but some people just are too trusting and think that buyers will pay if they say they will pay.

If don’t have your note in written form, then you simply won’t be able to find a serious investor who will pay you for it.

The Second Step – Be Sure All Payments On The Note Are Current

All payments on the note should be current so that the note is in good standing with all payments being made when they should be made.

The Third Step, Be Sure the Obligor Is Accessible

The person making the payments on the note should be accessible so that you have the latest contact information on them in case they have to be contacted regarding payment address changes and similar issues.

Fourth Step, Be Sure the Note Is Recorded With the local California County Recorder (Lien)

Your note Lien should be recorded at the local California County Recorder’s Office for the county in which the property securing it is located.  To verify this, you should look the lien up at the local California County Recorder’s office.

Fifth Step – Season The Note

You should be sure that the note has been in existence with payments timely made for a period of at least a year and preferably longer.

Sixth Step – Be Sure the Note Has Clear Terms

Your note should have all the terms stated in clear, unambiguous language. This means you should be able to look at the face of the note and know when it started, when it ends, what the interest rate is, what the monthly payment is, and what real estate secures it, as well as what happens in the event of a default by the person obligated to pay the note, and of course, who that person is.

Seventh Step – Have An Appraisal

You should have a copy of a current appraisal for the real estate securing the note. If you cannot afford or access a formal appraisal then a broker’s price opinion or BPO from a reputable real estate broker may suffice, though an appraisal is certainly better.


If you follow these seven steps and tips on how to get the most money for your note, you will be able to receive the highest value for it if you decide to sell.

I hope these tips have been helpful to you. I know I wish I had this information when I was first getting started as a California Note Buyer!