Info Needed To Get a Quote For Selling a Note

2013 July 8

I get a good many calls and e-mails for people wanting a quote on selling a note. Unfortunately, many lack all the info we need to accurately provide them a quote. So what information do we need for quoting a seller financed note purchase. Below is the list with some reasons why we need this information.

  1. The amount you sold the property for.
  2. The down payment on the sale.
  3. Sale date.
  4. The original amount of the note. These three items are to determine the initial equity.
  5. The date of the first payment. This serves two functions. First, it gives us a time frame for the sale which helps us get a feel for the current value. In other words, was the sale at the top of the market or after it crashed. This date also helps us calculate the balance if the seller does not know the balance. We can only calculate the balance assuming there were no extra payments made.
  6. The payment amount. Since we are buying payments, this is critical. We must also know if the note holder is collecting any taxes and/or insurance.
  7. The address of the property. We often do a quick web check on estimated value by one of the online valuation sites before we provide the quote.
  8. The current balance.
  9. The interest rate.
  10. Estimated credit of the borrower or borrowers.
  11. The current estimated value. We need this to determine the estimated equity in the property, an important component in determining risk.
  12. The amortization period.
  13. The number of remaining payments, including whether there is a balloon and if so, the amount and date.
  14. Have the payments been on time. Another risk indicator.
  15. Whether the property is owner occupied or not. Another component of risk.
  16. Lastly, anything about the property that would help us get a feel for it.

There you have it, information needed to supply a real estate note seller a solid quote. There is a link towards the top of our home page to request a quote for selling a note.

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