With interest rates near historic lows, now is an excellent time to sell a trust deed note. The Mortgage Buyer, Inc offers important facts and advice to help you make informed decisions and receive the highest cash price when you sell your trust deed note.
Sell your trust deed for top dollar.
The market value of your trust deed is inversely related to the general interest rate environment. This means that as interest rates fall, the market value of your trust deed increases — and as interest rates rise, the market value of your trust deed decreases. If you believe that future interest rates are more likely to go up than down, now would be an excellent time to turn your trust deed into cash.
Understand Your Trust Deed Payment Options.
The Mortgage Buyer, Inc offers a number of options regarding the sale of your
trust deed note and each option can be customized to provide you with the amount
of cash you need — when you need it.
Learn How to Receive the Highest Trust Deed Sale Price.
Seven steps towards turning your trust deed note into the highest possible amount of cash.
Whether you would like to discuss the possibility of selling your trust deed note or would simply like to have a question answered, we invite you to contact us by phone at (800) 618-2485 or email the Mortgage Buyer, Inc.
Facts to know when you sell a trust deed.
Almost every trust deed note can be sold, even trust deeds where the payments are not being made on a timely basis.
There are a number of companies that purchase trust deed notes. Together, we create a very active and competitive market.
Trust deed holders have a number of different sale alternatives available to them; each can be designed to help meet a specific goal you would like to achieve. For example, The Mortgage Buyer, Inc. offers customized trust deed payment options.
Providing as much information as possible about your trust deed will help you receive the highest possible sale price.
These are the steps necessary to complete the sale of a trust deed note.
The value of the property must be established by completing a drive-by appraisal.
A policy of title insurance must be purchased on the trust deed.
The outstanding balance of the trust deed must be verified with the Borrower.
At The Mortgage Buyer, we do all of the work and pay all of the expenses necessary to complete these steps.
As previously mentioned, with interest rates near historical lows there will probably never be a better time to sell a trust deed. If you believe that future interest rates are more likely to go up than down, now would be the right time to turn your trust deed investment into cash.
Tips for getting the best cash price.
It is important to have complete and accurate information available when you talk with trust deed buyers. Locate your documents; including the trust deed note and the settlement statement from the property sale.
Do your homework. Contact a number of trust deed buyers. Ask them how they do business, learn as much as you can and request a purchase proposal from each of them.
Make your decision about selling. If you decide to sell your trust deed, we suggest doing business with the company that offers you the best combination of price and service.
Enter into a purchase and sale agreement with the company you have chosen. Before you sign the agreement, be sure to understand who pays the transaction expenses and make sure you are not responsible for any charges if the sale does not go through.
The sale should be closed at a title company or attorney’s office. This is the best and safest option for you because it will provide a third-party closing agent to protect your documents and sale proceeds. The Mortgage Buyer offers this closing service to everyone we do business with.
Taking these steps will provide you with multiple purchase offers to consider and also provide some insight into the type of company you will be conducting business with. Choosing the best company to work with is as important as receiving the highest sale price.
Establish Market Value of your trust deed.
We recommend that anyone who wishes to sell a trust deed note first establish its “market value”. This can be accomplished by contacting a number of professional companies like The Mortgage Buyer, Inc. that purchase privately-held trust deeds. Take the time to ask questions and discuss your individual situation. Provide all of the information they need to do a thorough job for you and be sure to request all purchase offers in writing.
The market value of an owner-financed trust deed is defined as the maximum cash price a trust deed holder can sell it for in an active and competitive marketplace. Fortunately for trust deed holders, an active and competitive market does exist for privately held notes. Online research will produce a large number of companies that purchase private trust deeds. Of these, there are a handful of experienced and reputable companies that you have an opportunity to do business with. We recommend that you contact multiple trust deed buyers before deciding who to conduct business with.
The factors that trust deed investors will consider when evaluating your trust deed for purchase include:
The type of property securing the trust deed. Everything else being equal, the market value of a trust deed secured by a single family residence will be higher than a trust deed secured by land or commercial property.
The size of the cash down payment made at closing.
The property’s current market value and the amount of owner’s equity the borrower has in it.
The interest rate on the face of the trust deed.
The number of monthly payments remaining on the trust deed. The time-value-of-money dictates that shorter term trust deeds are valued more highly than longer term trust deeds.
The current level of interest rates. With market interest rates still near historical lows the market value of private trust deeds has never been higher. If/when trust deed interest rates begin to rise the market value of fixed-rate trust deeds will react inversely and begin to fall.
One of the most important factors in determining the market value of a trust deed is the strength of the borrower’s credit score. Everything else being equal, the higher the borrower’s credit score is, the higher the market value of a trust deed will be.
Trust deed holders exploring the option of liquidating their note should reach out to several trust deed investors for information. A few calls should be sufficient to explore your options. To help establish the market value of your trust deed, call The Mortgage Buyer at (800) 618-2485, or contact us via email, or complete our online trust deed quote form.