What Happens When I Sell My Note?
Selling your mortgage note can involve a lot of questions.
Here at Alvernia Capital Management, we’ve laid out the entire process so you’ll know what happens every step of the way.
Step #1 – Request a Free Quote
Fill out the form here to request a free, no-obligation quote to start the note selling process. You will want the following documents in hand in order to provide accurate information:
- Settlement Statement
- Mortgage (Deed of Trust, Real Estate Contract, etc.)
- Promissory Note
- Payment History
Step #2 – Provide Necessary Documentation
If you are comfortable with the quote you receive and decide to move forward, we will also require you to provide copies of the following documents:
- Settlement statement
- Mortgage, Trust Deed, or Contract
- Promissory Note
These documents will also be required at closing.
Step #3 – Accept Offer
Once you accept the offer, it will be provided to you in written form. The agreement will state the price, specific conditions of the closing, and which party pays the associated costs. The offer is an indicative bid, subject to underwriting and due diligence.
Step #4 – Note Buyer Review
Alvernia Capital Management will undergo a detailed review of the transaction, also known as due diligence, during the note selling process. We will look at the buyer’s credit and review current tax and insurance status. We may conduct a payer interview to determine the validity of information we’ve received. We will also review payment history, insurance policies, and the existing title report.
Step #5 – Appraisal
Next, we will order an appraisal to determine the current property value. This is usually done with a Broker’s Price Opinion (BPO). In some cases, a full appraisal is completed.
By doing this, we can make sure the property value is equal to or greater than the sales price. If the appraisal shows that the value is lower, we may need to provide a revised offer.
Step #6 – Title Search
We perform a title search for several reasons: to verify the seller’s ownership rights, and to discover whether there are any claims, errors, assessments, debts or other restrictions on the property. Title problems identified by a search can impact the value of a property, and should be corrected prior to closing.
Step #7 – Closing
Once all of the steps in note selling are completed, we will send the final closing documents to the title company. They will arrange to meet with you for the signing. The title company will handle the exchange of money for the original note and transfer the documents. Funds are usually paid in the form of a wire transfer or cashier’s check. We also encourage you to have your attorney review the documentation and be available for counsel during the closing process.
Let Us Help Make the Note Selling Process Easier
The team at Alvernia Capital Management are experts in the note selling process. When you work with us, you’ll just need to gather the necessary documentation and let us do the heavy lifting for you!