If you are in the market to either sell your mortgage note or perhaps you want to buy note-secured properties then there are some things that you should keep in mind. You may have heard of this kind of transaction as vendor finance, carry back mortgage or even seller finance. Whatever the terminology, what it means in the most simplistic of forms is that you as a seller receive a monthly income from the buyer on a percentage of the purchase price of the property that you have financed privately with the buyer.
If you have never entered into a contract like this then it is highly advised that you find a broker. There is absolutely no shortage of these individuals or businesses around a simple search engine look will reveal hundreds and even thousands f them, and a quick check in your yellow pages will also turn them up.
You should also enlist the assistance of a real estate attorney who is very familiar in the contracts involved in this type of note transactions. Both you and the broker will need to agree to certain terms and conditions and they will need to be formally noted and accounted for in a legally binding agreement.
You should also set up an escrow account for which the income from the property is able to be deposited monthly. You are easily able to do this either by your self or with the help of your mortgage note attorney if you wish.
Be sure to check out the credit history and terms as well as the interest rates of the mortgage note that you are investigating. All of these things will play a vital role in the success or failure when you buy mortgage note properties.