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Private Mortgage
Notes, which are formed when Mortgage Loans, Land Contracts or Deeds
of Trust are created, are promissory notes whereby the purchaser of real
estate (the "borrower" or "mortgagor") pledges to
the seller (the "lender" or "mortgagee") that in
exchange for the ownership and title to the real estate, and in lieu of
cash, that the purchaser shall pay to the seller the balance of the purchase
price over a prescribed period of time.
As the holder of the note, the seller can market a portion or all of the
stream of income or cash flow of the note to a funding source. The
creditworthiness of the the purchaser is the basis for the sale of the note
as well as the value of the real property. The creation of a private
mortgage note is usually the result of the purchaser of the real estate not
being able to secure or qualify for a conventional real estate loan.
We can assist the seller of the property by providing a lump sump of cash for either the entire outstanding loan balance or any portion of a series of mortgage payments from a private mortgage note.
By contacting us at the very beginning of a transaction, we can advise the parties how to structure the private mortgage from the onset of the transaction so that Capital Funding can purchase the mortgage and the seller can immediately cash-out of the sale. This can be done even if the seller has a outstanding mortgage balance on the property being sold.
Call us at 1-800-322-5985 for more information, or use this link to our CONTACT US page.
