As a knowledgeable note seller, you should have the following documents ready before you sell your note to a Note Investor. These are the papers that you, your lawyer, or your real estate agent should have from the sale of the property in question.
Here's what each document says:
Note of Copy
Trust deed, mortgage, or land contract copy
Instructions for the escrow account from a real estate sale where the "Contract" was made
Escrow closing statement from a sale of real estate where the "Contract" was made
The "Contract" is covered by a title insurance policy.
Information about the property's fire insurance that secures the "Contract" (Insurance Company, Policy Number, Name and Address of Agent)
Record of Loan Payments (if possible)
Appraisal after the sale or at the time of sale (if possible)
Please send two pictures of the property in question (if possible)
Copy of a street or city map that shows where the property is (maps.google.com)
Plans, surveys, or other papers you have in your hands (if possible)
Tenant Rental Agreement (if applicabale - rental property note)
Once these things are in order, you can send your mortgage note to a note buyer to be bought. Most of the time, you can fill out a quick online form to send a note to a buyer with more experience.
After you send in your note, you should get a Soft Bid in 48 business hours. A soft bid is the first amount of money an investor is willing to buy a note for, before the information has been checked.
Once the soft bid is accepted, the note buyer does some preliminary research on the note information that was sent (i.e. credit score, property value, etc). Most of the time, this takes 72 business hours.
The soft bid could change if the information on the original note is wrong. So, when you first send in your note submission form, it's very important to be as accurate as possible. So, during the underwriting period, nothing will change, and you will get the money you need. The more you know and plan, the less you need to worry about.
Once the first check is done, the note investor will let the note seller know that the Firm Bid is still good.
The underwriting process will start once the firm bid has been accepted and all of the above documents are in the hands of the note buyer. This includes getting a drive-by appraisal, checking the title for liens, and making sure all note information is correct.
Instructions and a date for closing will be set up, and the transaction will be finished.
From front to back, if you have all of the above documents, it should take you about two to three weeks to get your check.
