Wondering how this whole process works? Get answers to frequently asked questions:
Here are straight forward answers to the most common questions on selling mortgage notes. We also invite you to visit our learning center filled with helpful articles and tips for creating and selling trust deeds, land contracts, and mortgage notes.
How does this work? How can Shimmer Financial help me?
In short, we help landlords sell properties using owner-financing. We are a full-service consultant and assist with the following:
- Analysis of your existing loan to create the best outcome
- Market and sale of the property
- Creating solid terms and paperwork (so you can recapitalize on your note at a later date if you wish)
- Legal documents to protect you and your asset
- Qualifying your borrower
- Boarding your loan with a servicer to document payments
Why Owner Financing?
Owner financing is on the rise with more sellers agreeing to accept payments from buyers. There are many reasons people agree to back a note, deed of trust, mortgage or contract including:
- Quick sale of the property
- Avoid Capital Gains Tax
- Monthly income from the note
- No hassles of bank financing (fees, delays, and strict underwriting)
- More qualified buyers
- Property is hard to finance
What if I have an existing mortgage?
If you have a mortgage, we are still able to assist you. We will use legal documentation to create a wrap note via a land contract. A land contract is a fully enforceable contract that lists the borrower as the new owner of the house without moving the title of the property into their name. They would earn title once their debt is paid.
What if my equity is low?
We can still help. For reference, we look at deals with as little as 15% investment to value. If you have more than 15% equity on your property, please reach out to us.
What if I am free and clear?
If there is no existing mortgage in place, it means we have more room to get you more cash up front, if that’s what you want to do. Just as an example, we can create a note for you and use our team of investors to buy a portion of the payments from you.
How do I maintain the value of my note?
Many of the items that affect the value of your note were determined at the time the property was sold. However, there are three things that you can do now to make your note more valuable:
- keep good records and copies of the payments received, (we will insist you use a third-party servicer)
- obtain a copy of the property insurance policy from the buyer each year; and
- verify the property taxes are paid when they come due (usually twice a year).
This will help maintain the value of your important asset and avoid any unpleasant surprises.
Once my note is created, can I sell all or part of my note?
We can purchase all or part of your remaining payments. Selling part of the payments allows you to receive a lump sum of cash up front, then payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment.
Many people elect to sell just enough payments to meet their cash needs today and keep some of the future payments as an investment or nest egg. Always ask for an option that meets your needs.
How do I get started?
The first step is to provide information by using our online form or by calling us at 845-459-5055. Your information is always 100% private. We also request copies of the documents relating to your transaction:
- Note and Mortgage (Deed of Trust or Contract)
- Closing statement
- Buyer information
- Pay history and current balance
- Previous title insurance policy
- Current hazard insurance policy
We will then provide you an offer subject to the standard title, appraisal, and buyer’s credit review. Once under contract, you will receive your cash as soon as all of the documentation can be obtained. This typically takes as little as 10-15 working days.
How will I be paid if I decide to sell my note?
The purchase price is paid in guaranteed funds (cashier’s check or wire transfer) upon receipt of the final transfer package and original documents.
We are happy to wire funds to the title company so you may exchange your original documents for the proceeds, assuring the safe and secure transfer of your valuable asset.
Why should I work with Shimmer Financial?
We pride ourselves on:
- Quick closings
- Excellent customer service
- Competitive quotes
- Providing customized options
- Strong financial backing
- Flexibility on all note purchases
- Confidentiality with all transactions
- Credibility in the industry
At Shimmer Financial we provide top rate service combined with the best prices available.
Contact us if we can assist you!