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Real Estate Notes                                     Online Request For Quote

 

FREQUENTLY ASKED QUESTIONS
You may scroll through all the answers below or you may click on
any individual question and go directly to its answer

  1. What is my note worth?
  2. Can I sell just a portion of my note?
  3. How can I get a quote on the value of my note?
  4. What information will I have to provide once I agree to sell?
  5. How long will it take to get my money?
  6. Who pays for the expenses like appraisals and title insurance?
  7. Will I have to attend a closing like when I purchased my home?
  8. What will be the impact on the person who bought my home?
  9. What type of properties are covered?
  10. Will you purchase second liens?
  11. What do I have to do if the buyer quits paying on the note?

ANSWERS TO QUESTIONS

  1. What is my note worth?
    This is always the first question and I can't give you an simple answer since every deal is different. Generally, the value of your note will be a present value calculation of your payments based on the current yield required by the funding sources. The yield they will require will be a function of current interest rates, credit of the payor, interest rate on your loan, buyer's equity in the property, timliness of payments, condition of the home, the appraisal, the seasoning of the note, and several other factors. This yield calculation can be overridden by ratio requirements that investors follow religiously. For more information see our page on Note Valuation.
  2. Can I sell just a portion of my note?
    Absolutely. There are a lot of different ways you can sell a portion of your note but the most common is to sell some portion of the next payments and then retain the right to the future payments once those are completed. When the funding source has received all of the payments they are entitled to you can then start receiving payments again or you can always sell those future payments at a later date.
  3. How can I get a quote on the value of my note?
    I have attempted to make this as convenient as possible. There are several options available. First, you can fill out the form that is included on this website (Go to the Real Estate Note Form) and click on submit when you have completed the information. You can also print out the form and complete it at your leisure and then mail it to me or call me toll free and give me the information over the phone. I can be reached at:
    Mail: Steve Story; 452 Stagecoach Trl; Elizabeth, CO 80107
    Toll Free phone number (800) 480-3928.

    I will get back to you with a quote for both a full buyout and any partial buyout you chose within 48 hours of my receipt of the information.
  4. What information will I have to provide once I agree to sell?
    It depends on the type of property but for a typical residential single family owner occupied home the following information will be required:
    • Copy of Original Note with Signatures
    • Copy of Recorded Mortgage or Deed of Trust
    • Copy of Sellers Statement from Sale
      (Closing statement or HUD 1 form)
    • Copy of Buyers Home Owner Insurance Policy
    • Copy of Title Policy (If Available)
    • Purchase and Sale Agreement on our Agreed Price
    • Information on all Buyers including name, address, phone number and social security number.
    • Payment History Verification (The lesser of one year or life of the loan)
  5. How long will it take to get my money?
    Once I receive the paperwork it typically takes from three to four weeks for you to receive your check.
  6. Who pays for the expenses like appraisals and title insurance?
    This is a very important question because there are brokers out there that will give you a higher quote on the value of your note but then will surprise you at closing with additional costs you will be required to pay.

    Story Financial Group gives only net quotes, that is what you are quoted is what you will get. We pay all costs associated with appraisals, credit reports of payor, title coverage, recording fees and documentation preparation fees. The one possible exception to this rule can be an abstract in those states where this is applicable. If this has to done from the beginning or for a long period of time it can be very expensive and I handle these on a case by case basis.
  7. Will I have to attend a closing like when I purchased my home?
    Not usually. On the acceptance of the price you will recieve a detailed list of information that will be required. Once received, we will take it over from there. If the paperwork is thorough, the signatures can normally be provided through Fedex but some investors will require a closing at a title company, especially if they have to file corrected paperwork. If this is required, they will always choose a location close to your home.
  8. What will be the impact on the person who bought my home?
    For the most part, the only impact on them will be that they will have to send their payment to a different source. In today's market this is a very common ocurrence anyway.
  9. What type of properties are covered?
    We can do almost all residential and commercial properties even including undeveloped land in most cases. The one exception is that we can only do mobile homes if they are permanently attached and include the land they sit on.
  10. Will you purchase second liens?
    Yes, but there must be a down payment of at lease 5% and sometimes , depending on market conditions, 10%. We can not purchase zero down second liens.
  11. What do I have to do if the buyer quits paying on the note?
    The first step is to find out why and then try to negotiate a makeup schedule but often there are serious reasons the buyer didn't pay and may not pay in the future. In a worse case, you will have to hire a lawyer and foreclose on the property and hope that the buyer has continued to take good care of your home. Unfortunately, foreclosures are seldom closed at full value and the FHA currently only gets 61 cents on the dollar for foreclosures. Obviously, you are much more secure if you received a large down payment on the sale of your home.

    This is not the only risk of holding a note. You must also make sure they are current on their homeowner's insurance so if the house burns down you will still receive your money. You must also make sure they are current on their property taxes and you should also do what you can to make sure they are taking good care of the home.

    These risks are one of the reasons some people chose to sell their notes--that risk is totally transferred to the funding source that purchases their note.

 
Real Estate Notes                                     Online Request For Quote