Can You Sell Seller Financed Notes?

In recent years, the economy has forced some sellers to get creative in their efforts to sell their property. Banks have become much more stringent with their lending policies recently, and this has resulted in many potential buyers running into difficulty in obtaining financing. The result is that more and more sellers have taken the initiative to finance their buyer’s loan themselves. Most sellers initially list their property for sale with the goal of getting a lump sum of cash at the closing table. However, if you had to offer seller financing to get your property sold, you likely now find yourself in the position of accepting monthly payments from your buyer rather than having that lump sum of cash in your bank account. The good news is that there are companies that will buy this note from you and give you a lump sum of cash in return.Seller financed notes have often been negotiated to between the buyer and seller, and may include term for a period of 10 to 30 years. They may have been structured to include a balloon payment or they may feature a special interest rate. Essentially, the buyer and seller structure the loan in a way that works well for both parties. When you approach a company to buy this loan from you, the company will analyze the terms of the loan. Some companies will only make an offer to purchase the loan if the loan terms have been structured in a specific way. For instance, some companies will only consider buying loans that do not have a balloon feature or that are amortized over 30 years. There are other companies, however, that will consider buying more creatively structured seller financed notes. Each company that buys such notes considers different loan criteria, so it is beneficial to shop around before you commit to an offer to purchase the loan.

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