How To Convert Real Estate Notes Into Cash

By: bizavings
People have resorted to converting real estate notes into cash, when they are in need of cash. More and more people need cash for purposes, such as paying off debts, investing in a better real estate deal, paying late payments, settling an estate, paying insurance liabilities, paying taxes, or paying for tuition.

Several firms offer to buy real estate notes and help convert them into cash. When a mortgage note is sold, the people paying the mortgage are not affected, since they will just continue paying regularly to a different individual or firm. All the terms and conditions of the original note remain unchanged. The firms who buy them usually pay the seller with a certified check from a reputable financial institution. Some firms deal in second mortgage notes, third mortgage notes, interest only mortgage notes, and new mortgages where just a portion of the note can be sold when cash is needed urgently. These firms check if the loan to value ratio is favorable. The main lure is getting money in hand instantly. This is not always guaranteed.

Documents Needed
You must present a copy of the original signed promissory note and a copy of the original recorded contract for deed, deed of trust, land contract, mortgage, real estate contract, trust deed, trust indenture, recorded memorandum or a notice which refers to any of the above. You must also submit copies of the closing or settlement statement, escrow agreement, title insurance commitment when sold, and the property's fire and hazard insurance information. You must present a copy and the current balance of the underlying first lien, a copy of the payment ledger and copies of up to the last 12 payments. They also require a detailed map with very specific directions to the property. Some also require current color photographs of the property and a tax parcel identification number. When the appraisal is satisfactory, the buyer sends the closing documents and the seller gets the money.

People often perform the conversion quickly as they are impatient to have cash in hand, rather than wait for it to accumulate slowly. People are given the option to sell completely or in part according to their needs. This is a good alternative to bank loans and the cash is guaranteed if the documents are in order.

Additional Help
There are online firms that can help you make the conversion. They are willing to do this for a small fee.
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