Yes, your happy getting your small monthly payments but for how long? 15 maybe 30 years? What if the new home owner defaults on their monthly payments to you? An option to you is cashing out!



To make sure you know what I'm talking about so far here is an example: Did you put up a for sale by owner sign in front of your house and you got your home sold After receiving your down payment you now collect monthly payments through an escrow or title company from the new property buyer?

Selling off the balance of your note for cash happens pretty much the same way as when you bought and sold your property but with much less paperwork involved.

A decent real estate buyer will cover closing costs and let you pick an escrow service of your choice to close the deal and sending you your discounted cash out.

You can choose the same title company or escrow service that you use right now to collect your payments. This way the current property owner may not even know that he now is paying a new note holder.

So many clients of mine ask me what happens to the actual person that bought the property and I tell them that they still are the actual property owner so they still own the home and live there unless of coarse if they default on payments to the trust deed. This does happen often and is the reason why cashing out of your note can be a great option.

There are many reasons why a person holding a private financed loan would want to cash out of the real estate loan. Especially not having to worry about the new home owner to go into default setting the note holder up for default. The note holder can find a trust worthy note buyer and sell off the note for cash.