Knowledge Base
Mortgage Notes Learning Center
Be the Bank When You Sell Your Home
When you sell a property using seller financing, you act as the lender—collecting payments directly from the buyer. This is also known as owner financing, private mortgage, seller carry-back, or installment sale. The buyer pays over time under the terms of the promissory note, while you, as the seller, hold the rights and privileges of a lender.
Benefits of Seller Financing
More Prospective Buyers
Bank financing can be restrictive. Seller financing expands your pool of buyers by letting you decide who qualifies.
Reduce Marketing Time
Instead of lowering the price after weeks on the market, offering seller financing can attract buyers willing to pay more in exchange for flexible terms.
Quicker Closings
Traditional loans may take six to eight weeks to close. A seller-financed deal through a reputable title company can close in as little as two to three weeks.
Buyer Savings
Buyers avoid hefty bank fees when financing directly with the seller.
Earn Interest
Seller financing lets you earn interest on the credit you extend. Over time, the total received often exceeds the property’s sale price.
Creating Quality Seller-Financed Notes
We can assist in drafting the documents needed to structure a seller-financed transaction—free of charge. All we ask is that if you later decide to sell the note, you give us the first opportunity to purchase it.
Key considerations for a strong, marketable note:
• Buyer’s Creditworthiness – Always verify credit history.
• Down Payment – A larger down payment reduces risk.
• Affordability – Confirm buyer income and ability to pay.
• Note Terms – Interest rate, term, and monthly payments should be set favorably.
Best Practices
• Payment Servicing – Use a third-party servicer to collect and record payments, manage taxes and insurance, and provide annual tax forms.
• Safekeeping – Store the original mortgage note securely (safe deposit box or fireproof safe).
• Professional Guidance – Seller financing is specialized. We’re here to help with structuring, servicing, or selling your note.
Selling Your Note for Cash
Monthly payments provide steady income, but circumstances sometimes require liquidity—medical expenses, tuition, taxes, or simply peace of mind if a borrower defaults. Selling your note gives you access to immediate cash.
• Sell Part of a Note – Assign payment rights temporarily. Once the term ends, payments return to you.
• Sell the Entire Note – Transfer the full note and receive a lump sum upfront.
Many sellers receive funds within 15 days from start to finish.
How Much is Your Note Worth?
The value of a note depends on factors such as payment history, remaining balance, borrower credit, and property type. Because each note is unique, we provide a free, personalized analysis.
Three simple steps to get an evaluation:
1. Gather Documents – Settlement statement, mortgage (Deed of Trust, Contract for Deed, or Land Contract), promissory note, payment history, current balance, title insurance, and hazard insurance.
2. Complete the Quote Request Worksheet – Summarizes the information we need.
3. Submit for Review – Receive your quote within 48–72 hours. Quotes are subject to due diligence (title, appraisal, insurance, borrower credit, and other underwriting) and are valid for 30 days.
Closing Process
Transactions are handled through a title company or loan servicer acting as an independent third party, protecting both sides. You simply provide the required documents—there’s no need to appear in person. At closing, the original loan documents are exchanged for funds, which are wired to you the same day.