Planning for the New Year: Is it the Right Time to Sell a Mortgage Note?

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We celebrated the new year not long ago. We watched the ball drop, made resolutions, and toast to 2013.

The new year is about starting over. Although we may reflect on the past (e.g. how 2012 ended with a turbulent presidential election and worries about the fiscal cliff), the new year is more about planning for the future. It’s a great time to look ahead and plan for the future.

The decision to sell a portion or all of a mortgage note (also known as a real estate note or deed-of trust) typically boils down to one of two categories.

First: Simpler Life

Although a mortgage note is a great investment, and can provide monthly income, it can also be burdensome to manage the risks and responsibilities that come with holding one. You might consider selling your mortgage note if you find any of these to be stressful.

  1. Manage your mortgage note’s payments, insurance and taxes.
  2. Plan your estate for your heirs.
  3. Financial settlement in the case of divorce
  4. Accepting the risk that the payer may default on a mortgage or declare bankruptcy.
  5. Unexpected changes caused by the death or divorce of the payer.
  6. Be concerned about foreclosure and default.
  7. There are concerns about the property’s devaluation.

Second: Cash Requirement

It is clear that changes in life, whether planned or unplanned, can often lead to expenses. Selling real property notes is an easy way to quickly raise cash. It can also be very lucrative depending on the amount of your mortgage note. There are many types of life events that could justify selling a mortgage-note.

  1. Medical expenses covered
  2. College tuition costs.
  3. Start a family or plan a wedding.
  4. Buy new real estate
  5. You can make a career shift or invest in a new company.
  6. You can transition to other investments or reinvest at a higher rate of interest.
  7. Purchase of a vehicle or other expensive items.
  8. Finance of travel plans
  9. Managing retirement expenses.

You may be in the process to decide if selling your mortgage note is a good idea. For more information, contact a trusted mortgage note buyer.