Advantages and Disadvantages of Selling a Mortgage Note Vs Holding the Note

In today's volatile economy, many note holders are seriously evaluating whether to sell their private mortgage or not. So what are the advantages and disadvantages? Let's start with the disadvantages.

USA, AL (prHWY.com) November 25, 2012 - USA, Nov 25, 2012 - In today's volatile economy, many note holders are seriously evaluating whether to sell their private mortgage or not. So what are the advantages and disadvantages? Let's start with the disadvantages.

Disadvantages of Selling a Private Mortgage:

1. First and most obvious, once you sell your note your monthly income is gone forever.
2. If you had a significant gain on the sale of the home that you have spread over the life of the note, you may have to show all of the remaining gain once the note is sold. (Consult your tax adviser.)
3. You will take a discount on the remaining note balance due to the time value of money.

Advantages of Selling a Private Mortgage:

1. You receive a significant lump sum of cash, usually very quickly.
2. You can utilize this cash for lucrative business opportunities or just as a cushion for these tough economic times to ease anxieties.
3. You no longer are at risk of a default on the mortgage note and the hassles of having to foreclosure.
4. You no longer have to worry about whether the mortgagor has paid their property taxes or maintained the home.
5. You don't have to keep monitoring the tax office to see whether the mortgagor has any new liens on the property from a second mortgage or federal or state taxes, etc.
6. Lastly, you no longer have to keep detailed records on the mortgagor's payment history or report interest payments to the tax authorities.


cash for mortgage note - To decide whether selling a note is a wise decision, an individual can request a free quote from a note buying company. This can then be evaluated against the need for cash. If the cost seems reasonable and the note holder would prefer to be released from the seller financing arrangement, selling the note may be the best option.

The sale of a mortgage note makes the holder more liquid. In this economy, liquidity is important because every day seems to hold a new surprise. Buyers of seller held notes compete to offer the best pricing and fast transaction processing times. Note holders who are not comfortable with selling the note in its entirety can sell part of it, getting cash in exchange, while retaining ownership of a portion.



About the Author:

Mortgage Note - KIOS NOTES is the fastest growing residential and commercial mortgage note buyer in the country today. We can fund the purchase of your mortgage note in as little a 15 business days. If you have an existing mortgage note that you want to sell now, simply contact us to get started today.

Contact Details

Kios Notes
USA

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