FREE NOTE APPRAISAL
Curious About Selling Your Note?
Can I sell my mortgage note?” or “how do I sell my mortgage note?”, We have the answers and will help you take the first step to becoming a more informed Mortgage note holder.
When we work with note holders that both understand what their goals are in selling their note along with what separates a good note from a bad one. You owe it to yourself, to understand all you can about this option.
Here is some of the information we cover:
- What makes a good note?
- How can I maintain the value of my note?
- What questions should I ask a CPA
- Mortgage Note safety
- How to sell a seller carry back note Full or partial
- If you have to foreclose on a borrower what to expect and how long does it take TO START TO FORECLOSE
- Much more
Mortgage note holders can destroy their ability to re-sell their notes by doing things incorrectly. Don’t let this happen to you.
Note Purchase Options
Did you know you don’t need to sell your entire note?
Most note sellers didn’t know that they could structure a note sale where they receive money now AND money later.
This type of transaction is called a “partial.” And it is when an investor only purchases a limited number of payments.
For example, let’s say the buyer of the property still owes you 300 payments.
An investor might purchase the next 50 or 100 payments, giving you cash now.
After the investor collects those payments, the note goes back to you.
You can elect to receive the payment every month or sell the note again! It is truly a win-win.
Note Safety—Storage
It is important to keep your original note in a safe place such as a Bank deposit box or a gunsafe in your home. Make a photocopy to keep with your Note/trust deed and other escrow papers.
There are two reasons for this precaution. First, the note is not recorded in the county recorder’s office. The deed of trust is. If you lost your deed of trust, you could simply get another copy at the recorder’s office.
Second, the note is a negotiable instrument that can be endorsed on the back like a check. You don`t keep uncashed checks lying around the house so think of your note like check and guard it
Maximizing Note Value—Payment Records
Keeping a detailed, well-organized and legible payment record showing the date each payment was received, and a breakdown of the principal, interest and late charge for each amount received is important to maintaining the value of your note.
Note Problems—Late Problems
If your note calls for a late payment charge, be sure to collect it. Most note holders have a late payment charge built into their note but do not collect it. Reasons to collect the late charge besides the obvious one that it is more money in your pocket. First, you will again improve your chances of receiving future payments on time if you collect the late charge. Second, if you don’t collect the late charges regularly, you may not be able to collect them later in the event of a foreclosure because you demonstrated that you do not enforce that part of the note contract.
Enforce that part of the note contract.
The Foreclosure Process
Whether You Get the Right to Reinstate Before the Foreclosure Sale
A “reinstatement” occurs when the borrower brings the delinquent loan current in one payment by paying the overdue payments, plus fees and expenses incurred due to the default. Once the loan is reinstated, the borrower resumes making regular payments on the debt. In a foreclosure, state law sometimes gives a borrower the right to reinstate up until a specific deadline. You should be aware that, even if state law doesn’t give you the right to reinstate, your mortgage or deed of trust might. Or your lender might agree to let you reinstate the loan.
In the chart below, this column indicates whether state law provides a reinstatement right during the most commonly-used foreclosure procedure for that particular state
Getting More Information
The chart below gives basic information about the key aspects of foreclosure law in the states and District of Columbia for the foreclosure process listed (nonjudicial or judicial). It’s only a summary of your state’s laws associated with the procedures used typically in the state, and doesn’t tell the entire story. The chart is intended for owners of single-family residences. It doesn’t address special laws for agricultural land or the rights of tenants in foreclosed homes owned by their landlords.
Also, keep in mind that laws change, so checking them is a good idea. To get further information about how foreclosures work in your state and your rights during the process, talk to a foreclosure attorney
Foreclosure Chart
State
Common foreclosure process
Deficiency judgment allowed?
Redemption allowed after sale?
Reinstatement available under state law?
Alabama
Nonjudicia
Yes
Yes
No
Alaska
Nonjudicia
No
Not available after a nonjudicial foreclosure, unless the deed of trust specifically provides a right of redemption
Available any time before sale, but lender can refuse to reinstate if it filed two or more prior notices of default and the borrower cured the defaults
Arizona
Nonjudicia
Not for oneor two-family home on 2.5 acres or less
No
Available until 5:00 p.m. on the day before date of sale (other than a Saturday or legal holiday)
Arkansas
Nonjudicia
Yes
No
Allowed prior to sale
California
Nonjudicia
No
No
Allowed up to five business days before the sale date
Colorado
Nonjudicia
Yes
No
Available until noon the day before the sale provided the borrower files a notice of intent to cure with the public trustee no later than 15 calendar days before the sale date
Connecticut
Judicial (strict foreclosure or foreclosure by sale)
Yes
Strict foreclosure: until Law Day Foreclosure by sale: until court confirms the sale
No
Delaware
Judicial
Yes
Yes (up until court confirms the sale)
No
District of Columbia
Nonjudicial
Yes
No
Allowed up to five business days before the sale, once in two consecutive years
Florida
Judicial
Yes
Yes, but must do so before the clerk files the certificate of sale, or the time stated in the foreclosure judgment
No
Georgia
Nonjudicial
Yes, if a court confirms the sale
No
High-cost home loans may be reinstated until title is transferred
Hawaii
Judicial
Yes
No
No
Idaho
Nonjudicial
Yes
No
Available within 115 days after notice of default is filed with county recorder
Illinois
Judicial
Yes, if borrower is personally served or enters an appearance in the action
Yes, if loan owner purchases the home at the sale and the sale price was less than the total amount owed
Available within 90 days after foreclosure complaint is served on borrower. Under High-Risk Home Loan Act, foreclosing party must serve notice of right to reinstate at least 30 days before starting foreclosure lawsuit.
Indiana
Judicial
Sometimes
No
If the borrower reinstates before the court enters judgment, the foreclosure must be dismissed. If the borrower reinstates after judgment, but prior to the sale, the foreclosure must be stayed (postponed). Reinstatemen t also available for high cost home loans (defined in Ind. Code § 24-9-2-8) any time before title is transferred by means of foreclosure.
Iowa
Judicial
Sometimes
Sometimes
Available within 30 days after notice of default if the land is nonagricultural
Kansas
Judicial
Yes, unless borrower is served by publication and does not appear in the action
Yes
No
Kentucky
Judicial
Yes, generally
Sometimes
Generally, no right to reinstate (except as permitted by the terms of the mortgage). If loan is a high-cost home loan (under Ky. Rev. Stat. Ann. § 360.100), foreclosing party must provide a notice of default giving the borrower at least 30 days to reinstate before filing the foreclosure complaint.
Louisiana
Judicial (executory proceeding)
Yes
No
No
Maine
Judicial
Yes
No
Borrower has the right to reinstate within 35 days after receiving the notice of right to cure. Also, lender, in its sole discretion, may let borrower reinstate the loan any time before the sale. Maryland Nonjudicial (court must ratify) Yes Yes, but only up until court ratifies the sale Available until one da
Maryland
Nonjudicial (court must ratify)
Yes
Yes, but only up until court ratifies the sale
Available until one day before sale date
Massachusetts
Nonjudicial
Yes
No
90-day right to cure
Michigan
Nonjudicial
Yes
Yes
No
Minnesota
Nonjudicial
No (in most cases)
Yes
Available any time before the foreclosure sale
Mississippi
Nonjudicial
Yes
No
Available at any time before the sale
Missouri
Nonjudicial under Small Tract Financing Act
No (in most cases)
No (in most cases)
Any time prior to sale under the Small Tract Financing Act
Nebraska
Nonjudicial
Yes
No
Borrower may reinstate by paying amount due within one month after recordation of notice of default
Nevada
Nonjudicial
Yes (but not in certain cases)
No
Borrower may reinstate up to five days prior to sale
New Hampshire
Nonjudicial
Yes
No
No
New Jersey
Judicial
Yes
Yes, up until court confirms the sale or if lender gets a deficiency judgment
Available up to date of final judgment of foreclosure. Judgment may be delayed for 45 days if borrower needs extra time to reinstate.
New Mexico
Judicial
Yes
Yes
Borrower usually gets a 30-day opportunity to reinstate before the foreclosing party initiates foreclosure. Some borrowers may also reinstate at any time prior to the time title is transferred by means of foreclosure sale.
New York
Judicial
Yes, if borrower served personally or appears in the action
No
Available any time before final foreclosure judgment (foreclosure will be dismissed) and any time after judgment, but before sale (foreclosure will be stayed)
North Carolina
Nonjudicial
Yes, in some cases
Yes, during the upset bid period (initial upset-bid period lasts for 10 days after the report of sale is filed)
No
North Dakota
Judicial
Yes, but not for most owner-occup ied homes
Yes (but not abandoned properties)
Available within 30 days after service of the notice before foreclosure
Ohio
Judicial
Yes
Yes, up until the court confirms the sale
No
Oklahoma
Judicial
Yes
Yes, up until the court confirms the sale
No
Oregon
Nonjudicial
No
No
Available up to five days before sale. The law limits the amount borrower can be charged in attorney or trustee fees.
Pennsylvania
Judicial
Yes
No
Available until one hour before the bidding at the foreclosure sale, but a maximum of three times in one year
Rhode Island
Nonjudicial
Yes
No
No
South Carolina
Judicial
Yes
No, but if lender seeks a deficiency judgment, then borrower can make an upset bid during 30-day period following sale
No
South Dakota
Nonjudicial
Yes
Yes
No (unless the mortgage is a short-term redemption mortgage, then 20 days before acceleration)
Tennessee
Nonjudicial
Yes
Yes, unless loan documents waive right to redeem
No (except in the case of a high-cost home loan)
Texas
Nonjudicial
Yes
No
Available within 20 days after foreclosing party serves (mails) the notice of default
Utah
Nonjudicial
Yes
No
Available for three months after notice of default is recorded
Vermont
Judicial (foreclosure by judicial sale or strict foreclosure)
Yes
Foreclosure by judical sale: redemption period is prior to sale Strict foreclosure: yes, after foreclosure decree
Available upon agreement before sale
Virginia
Nonjudicial
Yes
No
No
Washington
Nonjudicial
No
No
Available up to 11 days before sale
West Virginia
Nonjudicial
Yes
No
Notice of default must give the borrower ten days to cure the default and reinstate the loan. The borrower loses the right to reinstate after three defaults.
Wisconsin
Judicial
Yes
No
Available any time before judgment. Borrowers may reinstate after judgment, but if they subsequently default, the foreclosure will continue.
Wyoming
Nonjudicial
Yes
Yes
No
Detailed Quote Form
Once we receive this information, we’ll reach out to quickly to provide you a few options and ask any additional questions.