People have resorted to converting real estate notes for cash, as they are cash strapped and in need of cash. More and more people need cash for purposes, such as, paying off debts, investing in a better real estate deal, late payments, settling an estate, insurance liabilities, tax problems or to pay for tuition or when people have become tired of collecting monthly payments or just the desire to have cash in hand etc.
Several firms offer to buy real estate notes and help in converting real estate notes for cash. When a mortgage note is sold, the persons paying the mortgage are not affected, as they will just have to continue paying regularly but to a different individual or firm. All the terms and conditions of the original note remain unchanged. The firms who buy the notes usually pay the seller with a certified check from a reputed financial institution. Some firms deal in second, third mortgage notes, interest only mortgage notes, new mortgages just a portion of the note can be sold in case cash is needed urgently. These firms buying the notes check if the loan to value ratio is favorable. The main lure is getting cash in hand instantly where as it is not guaranteed with a note. Documents Needed For Converting Real Estate Notes for Cash;
Copy of the original signed promissory note, if applicable needs to be presented. A copy of the original recorded contract for deed, deed of trust, land contract, mortgage, real estate contract, trust deed, or trust indenture, or a recorded memorandum or notice which refers to any of the these. Copy of the closing or settlement statement, escrow agreement, title insurance commitment when sold, the property’s fire/hazard insurance information, if applicable have to be submitted too. Copy and current balance of the underlying first lien has to be presented. Copy of payment ledger and copies of up to the last 12 payments needs to be presented too. A detailed map with very specific directions to the property is required too. Current color photographs of the property, tax parcel identification number etc. Are some of the details needed for converting real estate notes for cash. When the appraisal is satisfactory, the buyer sends the closing documents and the seller gets cash for his real estate notes.
Thus, people are converting real estate notes for cash easily as they are impatient to have cash in hand, rather than wait for it to accumulate slowly. People are given the option to sell the note completely or in part as per their needs. This is a better alternative to bank loans and the cash is guaranteed if the documents are in order.
There are online firms that would help you with converting real estate note for cash.
Alexander Gordon is a writer for www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.
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