Mortgage Note Broker

Mortgage note brokers buy seller-held mortgage and land contracts, among many other types of real estate documents. These professionals may also buy cash flow notes, deeds of trust, or installment notes which are documents that assert a promise to pay the amount according to certain terms, including a stated interest rate and the length of time. Properties are commonly advertised for sale by owner with owner financing available. When a seller finances the property instead of getting all the money up front, this can create a financial problem in the long run. This is why one chooses to sell a contract to a contract broker.

Many people sell their mortgage contract because they are in dire financial needs, such as medical expenses, education expenses, or mounting, high-interests credit card debt. Others simply grow tired of collecting payment each month. Many owners who finance a property will consult with a mortgage note broker in order to sell the entire contract or a portion of it. These brokers do not make loans; rather find buyers for existing contracts. If a property owner is collecting payment on a contract weekly, monthly, or quarterly, it's possible to sell the contract and get money right away.

Unlike banks, these professionals do not lend money, but find investors who buy debt and connect the property owner with those investors. Mortgage note brokers present the contract to many different potential investors to ensure the best price. Also unlike a bank or other lending institution, a mortgage note broker is not concerned with the property owner's credit or assets. What they look at is the future money that will be earned on the mortgage contract. These professionals provide a great alternative to waiting 30 years to receive full payment on a contract and many of them will pay the closing costs and fees.

It pays to do research when selecting the right company to purchase one's contract. Individuals can be mortgage note brokers and there are thousands of entrepreneurs across the country that are in business to purchase these contracts, but the ideal mortgage note broker is a bank or perhaps a pension fund manager that invests primarily in promissory notes. These professionals consider promissory notes to be fairly safe financial investments. It may advisable to sell one's contract if fast cash is needed. However, property owners need to take their time and be informed to find the right professional to sell to. "The simple inherit folly: but the prudent are crowned with knowledge" (Proverbs 14:18).

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