Frequently Asked Qestions

If you're satisfied with receiving your periodic payments and do not need immediate cash, then you probably don't need to sell your note. But, if you are in need of immediate cash, we can help.

In life, many people find themselves in situations where they need additional or immediate cash. Whether to pay off bills, start a new business, invest in a new project, buy a new house or take a special vacation.

People familiar with the present value of money understand the reasons to sell. Today, more and more people are choosing to take cash NOW rather than wait for future payments.

Life is a journey ... enjoy the ride now while you're willing and able to!

The value of a note is affected by your down payment, interest rate, payment amount, term and your credit rating and payment history.

The type, condition, and value of the property also impact the value of your note.

Given the time value of money, moneys received now are more valuable than money received later ... 20 to 30 years out. This "time value of money" also plays a factor in the evaluation process. Generally, due to inflation, money in your pocket today is worth more now than later.

All of these factors will be taken into consideration in determining the current value of your note.

Generally 2-4 weeks after we've received all required information/documents.

No. Alternate Financial Resources is very flexible and able to structure a number of different purchase options:
  (1) Purchasing all of the note, or,
  (2) Purchasing a certain number of payments of the note, or,
  (3) Purchasing a part of each payment of the note, or,
  (4) Purchasing future payments today while still receiving current payments.

The terms of your original note remain the same. The only change will be to whom and to where future payments are sent.

Of course! You should talk to anyone you feel comfortable with. Feel free to have them contact us if they have any questions or concerns.

The easiest way to determine the value of your note is to submit a free, no obligation quote form to us. We'll look at the details of the note and will respond with the highest possible price we can get from our funding resources.

We work with financing companies to purchase mortgage notes such as yours. After receiving a copy of your note, mortgage (or deed of trust), and closing statement, we look at many variables - the property used as security, the payer's payment history, the number of payments remaining, and general economic conditions to determine what the note is worth. The closing is handled at our expense.

The process for selling your note is simple and straightforward:

  1) Contact us and provide basic information about the note and property (type of property, sale price, payment amounts, etc.)

  2) After determining your note's market value, we present you with one or more quotes (depending on whether you desire to sell the full note or only part of it)

  3) If you approve the quote, we do a little more paperwork (don't worry, its a small amount). If there is no recent appraisal or title policy, we arrange for those. That's it!

  4) From the time that you approve the quote and send the basic documents, it generally takes 2-3 weeks for you to get your money. You may choose to receive the cash via check or electronically.

A note is simply a promise to pay. A mortgage secures that promise, using real estate as the collateral. When someone mortgages their property, they are conveying an interest in their property as security for payment of a debt. A Deed of Trust, used in many states, is similar and accomplishes the same purpose.

Each and every time your payer is late, you should document the event. You should state exactly when the payment was received, how many days late it was, and the penalty assessed for being late. You also need to state exactly how the funds you have received were applied, as to principal, interest and penalties. Send a copy to your payer and keep a copy for your files.

The receipt and acceptance of partial payments requires a new amortization schedule to be generated. Interest must be calculated on a daily basis, therefore partial payments alter the actual balances due for both interest and principal.

Yes, you should give the payer a written receipt, signed by both of you. Keep a copy. This will insure that the payer will not come back at a later date claiming that he paid you more than the required monthly payment amount.

The value of an income stream is calculated using discounted cash flow analysis.

The elements used to calculate the present value of your note are the amount of equity in the property (down payment plus regular payments), the number of payments remaining, the rate of interest of the note, the monthly payment amount, any future balloon payment that may be due, and current market interest rates.

Also included in determining the market value of your note are the type and location of the collateral, the condition of the property, the payer's credit rating and payment history, and especially the priority position of the mortgage (1st liens are generally more valuable than 2nd liens).

Yes. In fact, it is nearly always more prudent financially to only sell part of the note (called a partial) than all of it. If you only sell part of the note, the financing company that buys it is taking on less risk and receiving payments sooner in time. Since the company is taking a lower discount, this translates to you receiving more money against your note. Ask us for quotes on both the full note and a partial, and then see which works better for you.

Your recorded mortgage is superior to an IRS lien recorded after the mortgage.

Yes. When market interest rates go up, the value of a fixed rate mortgage goes down. When market interest rates go down, the value of a fixed rate mortgage goes up.

A mortgage on real estate is a security interest given to secure the payment of an obligation.

A deed of trust is a transfer of legal title to property from the owner (trustor) to a trustee, for the purpose of placing the legal title with the trustee as security for the performance of certain obligations.

A mortgage creates a lien against a property, while a deed of trust actually transfers the title to the property.

Mortgages are used in Florida and about half of the remaining states. Deeds of trust are used in California and Texas, among others.

If you sold your property on an installment sale basis, any money you collected on the sale of the mortgage would be taxable in the year received. If you paid taxes on the whole sale in the year of the sale, there would be no tax consequence. The person paying you (the mortgagor) would not be affected at all except for sending his payment to a new address.

You should be a named insured on the insurance policy, and you should have a copy of the policy sent to you. Also, you should require the insurance company to notify you if the coverage lapses.

If the home burns, a check is often issued in the name of both the mortgagor and the mortgagee. Both parties must sign the check. Regarding who gets the insurance procee ... it depends upon the provisions of your mortgage.

If the home was not insured, the value of your collateral has been significantly reduced.

You will become a secured creditor in the bankruptcy proceedings. Often, the bankruptcy trustee will pay your arrearage and the debtor will be instructed to pay you directly on the remaining balance.

Simply contact us today.