Have a Note You Want to Sell?
What Happens When You Sell Your Note? Selling your mortgage note raises many questions. Here we lay out the whole process, so you see what happens, step by step.
Step #1 – Request a Free Quote
To start the note selling process, request a free, no-obligation quote. Gather these documents:
- Settlement Statement
- Mortgage (Deed of Trust, Real Estate Contract, etc.)
- Promissory or Mortgage Note
- Payment History.
Step #2 – Provide Required Documents
Once you’re comfortable with the quote we provide and decide to move forward, we need copies of these documents:
- Settlement Statement
- Mortgage, Trust Deed, or Contract
- Promissory or Mortgage Note.
These documents also are required at closing.
Step #3 – Accept the Offer
Once you accept our verbal offer, we’ll provide it in writing. The agreement will state the price, specific conditions of the closing and which party pays which costs. The offer is an indicative bid, still subject to underwriting and due diligence.
Step #4 – Note Buyer Review
Beacon Enterprises will undertake a detailed review of the transaction, also known as due diligence.
We look at the buyer’s credit and review current tax and insurance status. We may conduct a payer interview to validate information we received. We review payment history, insurance policies and the existing title report.
Step #5 – Appraisal
Next, we order an appraisal to determine the current property value, usually with a Broker’s Price Opinion (BPO). In some cases, we get a full appraisal.
The appraisal makes sure the property value is equal to or greater than the sales price. If the appraisal shows that the value is lower, we may need to revise our written offer.
Step #6 – Title Search
We perform a title search to verify the seller’s ownership rights. We discover whether there are any claims, errors, assessments, debts or other restrictions on the property. Title problems identified by a search impact the value of a property. They need to be corrected before closing.
Step #7 – Closing
Once all of the steps in note selling are completed, we send the final closing documents to the title company. They arrange to meet you for the signing.
The title company handles the exchange of money for the original note and transfers the documents. Funds are usually paid as a wire transfer or cashier’s check.
We encourage you to have your attorney review all documents and be available for counsel during closing.
