{"id":2213,"date":"2020-05-21T19:06:13","date_gmt":"2020-05-21T19:06:13","guid":{"rendered":"https:\/\/www.coastalcapital.com\/?p=2213"},"modified":"2021-12-17T21:49:23","modified_gmt":"2021-12-17T21:49:23","slug":"can-i-sell-part-of-my-mortgage-note","status":"publish","type":"post","link":"https:\/\/www.coastalcapital.com\/can-i-sell-part-of-my-mortgage-note\/","title":{"rendered":"Can I Sell Part of My Mortgage Note?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2213\" class=\"elementor elementor-2213\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-fad4a07 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fad4a07\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-bacdbda\" data-id=\"bacdbda\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-945233a elementor-widget elementor-widget-text-editor\" data-id=\"945233a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><p>Owner Financing doesn\u2019t have to mean waiting years or decades to receive money.<\/p><p>Sellers have the choice to sell all or just part of their future payments for cash today.<\/p><p><strong>Option 1<\/strong><span>\u00a0<\/span>\u2013 When note buyers purchase<span>\u00a0<\/span><strong>all the remaining payments<\/strong><span>\u00a0<\/span>on a land contract, mortgage note, or trust deed it is considered a<span>\u00a0<\/span><strong>full purchase<\/strong>.<\/p><p><strong>Option 2<\/strong><span>\u00a0<\/span>\u2013 When the note buyer purchases just a<span>\u00a0<\/span><strong>portion of the remaining payments<\/strong><span>\u00a0<\/span>it is considered a<span>\u00a0<\/span><strong>partial purchase.<\/strong><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-814d0b5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"814d0b5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a593d96\" data-id=\"a593d96\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1fcc1c7 elementor-widget elementor-widget-text-editor\" data-id=\"1fcc1c7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><p>Here\u2019s a closer look at two examples using the Full and Partial Purchase Options.<\/p><p>\u00a0<\/p><h4>The Full Purchase<\/h4><p>For example, a note has a balance of $90,000 at 9.0% interest payable in monthly installments of $1,140.08 with 120 months (or ten years) of payments remaining. When the seller sells all 120 remaining payments of $1,140.48 to an investor it would be considered a full purchase.<\/p><p>\u00a0<\/p><h4>The Partial Purchase<\/h4><p>If the investor only purchased the next 48 monthly payments of $1,140.48 each then it would be considered a straight partial purchase. Once the investor received the next 4 years of payments, the note would be reassigned to the seller and the seller would collect the remaining 72 payments (120 total payments less the investors purchase of 48 payments leaves 72 payments remaining to the seller).<\/p><p>The purchase can also involve splitting the monthly payments received from the buyer between the investor and the seller, also known as a split partial. Using the same example of 120 payments of $1,140.08 each, an investor might agree to purchase $600 of each remaining payment leaving a remaining residual of $540.08 to the seller for the next 120 months.<\/p><p>The terms of the transaction are spelled out in the Purchase Agreement. This important document outlines the servicing arrangement along with what happens in the event of an early payoff or default by the buyer. Competent legal counsel should review the agreement to protect the rights of all parties.<\/p><p>\u00a0<\/p><h4>So What Option Is Best When Selling Mortgage Notes?<\/h4><p>The best choice will depend on the cash needs of the seller and the value of the payments being sold.<\/p><p>A partial purchase can help minimize the discount but it comes with the worry of the buyer keeping payments current in the future.<\/p><p>A full purchase can give sellers peace of mind knowing they are through with the property once and for all.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Owner Financing doesn\u2019t have to mean waiting years or decades to receive money.<br \/>\nSellers have the choice to sell all or just part of their future payments for cash today.<\/p>\n","protected":false},"author":1,"featured_media":2214,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.0.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can I Sell Part of My Mortgage Note? - Coastal Capital<\/title>\n<link rel=\"canonical\" href=\"https:\/\/www.coastalcapital.com\/can-i-sell-part-of-my-mortgage-note\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can I Sell Part of My Mortgage Note? - Coastal Capital\" \/>\n<meta property=\"og:description\" content=\"Owner Financing doesn\u2019t have to mean waiting years or decades to receive money. 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