Real Estate Brokers
Did you know the Note Servicing Center can help you put more transactions together, make more money, build a client base, enlarge your image, make more properties available and close transactions more quickly? Separate yourself from the competition and stay a giant step ahead.
In our experience as the Real Estate Broker/Owner of a Franchise Operation, we found that Agents and Brokers are often reluctant to suggest Seller Financing (Owner Financing/Seller Carry Back) to the Sellers when listing a property. Sometimes, using Seller Financing is the ONLY way a property can be sold, particularly if the property is non-conforming, in a transition zone, needs rehabbing, has excess land or involves vacant raw land.
Seller financing differs from a traditional loan because the seller does not give the buyer cash to complete the purchase, as does a lender. Instead, it involves extending a credit against the purchase price of the home while the buyer executes a promissory note and deed of trust in favor of the seller. Generally, the paper work is prepared by a Title and Escrow Company. The Broker prepares an offer to purchase much like any other Offer to Purchase and Receipt for Deposit.
The Seller Carry Back Mortgage or Trust Deed is a tried and true method of facilitating the sale of real property. Seller financing allows the parties to decide on the interest rate, term and payment schedule. Often these are tailor made to meet the needs of both parties. Other benefits include:
- Minimized cost of sales transaction
- Escrow will Close quickly
- You can Sell a property that otherwise would not qualify for a loan
- Your seller will be able to defer capital gains with an installment sale
- When your seller agrees to provide owner carry back financing it provides a larger pool of buyers for you and for them
- Sometimes obtains a higher price by offering terms
- Allows greater flexibility in financing
- Provides income stream through interest income with Secure Property
- Loan Servicing with Note Servicing Center can OVERCOME Seller Objections to carrying back paper by providing the following benefits:
- Seller can SELL note for Cash, or sell “part of the note” and keep part of payment
- No Hassle in Collection of the Payments – No more “the check is in the mail”
- Set up an Escrow/Impound Fund for Taxes and Insurance and pay them when due
- Provide Collection Services
- Freedom of Seller to Travel without worry
The Seller will be required to provide an IRS form 1098 to the Buyer and file an IRS form 1099. But don’t worry about that. The Note Servicing Center takes care of this task – no problem.
Typical documents recommended for Seller Financing are the Mortgage Note or Note and Recorded Trust Deed, Seller Financing Statement and Request for Notice of Delinquency (If a second Mortgage or Note.)
We, at the Note Servicing Center, have been helping sellers who carry back notes for more than 25 years now. We take care of all the hassles. We transfer the buyer’s funds safely and securely into your Trust Account for disbursement. Or we can offer the buyers the opportunity to have their payments automatically withdrawn for their account on a monthly basis and deposited electronically into the seller account. Click here to review a list of the services we provide and how to get started.
The Note Servicing Center has a proven record of handling the servicing and collection of notes for Seller nationwide since 1984. We are licensed with the Department of Real Estate.
Brokers and Realtors: If you have questions – We can help!! (Click Here)