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"...committed to informing mortgage note sellers." - ABACUS NOTE |
FAQs. Informing the note holder.
Q:
How fast can you close on my note?
What are the steps in selling my note?
What determines the value of my note?
What are your purchase options?
A: Why must I discount my note?e?
Selling your mortgage note is a win-win situation for both the seller and the mortgage note buyer. Given that both parties understand the concept of Time Value of Money or the effects of inflation on today's dollar. Basically money is more valuable now than in the future. Say you are receiving $800.00 a month on a mortgage note. With a modest inflation rate of 4% per year your last $800.00 payment will only be worth $365.18 in today's buying power. Each payment received in the future is really worth less than the last. Abacus shows you >>
Consider that if you are owed $80,000 on a note payable in installments it 's not really worth $80,000 in cash today. Taking into account the time frame and terms of the note it maybe worth $65,000 or $60,000. Savings bonds work on the same principle. You wouldn't pay $100 today for a savings bond that would mature in say 20 years and be worth $100, you would actually pay $50 dollars today for the right to receive the matured value at a future date.
At this point you may be considering the fact that you are receiving a high interest rate on your note. Let's say 10%. The fact is real estate notes pay simple vs. compound interest. It is our experience that this is one of the chief reasons that note owners sell their mortgage notes.
Abacus shows you >>How fast can you close on my note?
We can typically fund your note within 10 -15 working days. Note that the 10 -15 day typical funding period begins when we receive your recorded note and related paperwork.
What are the steps in selling my note?
- Fill out a request for a mortgage note quote.
- Abacus structures the most appropriate offer based on your situation.
- Upon your approval we draft a mortgage purchase agreement for you to sign. It outlines the sell of the note.
- After we gather the required documents we submit the note to underwriting and we order an appraisal.
- Closing documents are then sent out to be singed and returned to us.
- Once received, we close and disperse funds. Abacus shows you >>
What determines the value of my note?
While we will purchase your note for the highest possible value, there are a few issues which effect the value of notes we purchase. The ratio of the property Vs the amount owed, seasoning of the note (how many payments have been made), the credit of the payer all play a role in determining the value of your mortgage note. There has never been a better time to sell your note! The economy for note funding is at an all time high. For further information submit a note and we can discuss various purchase options with you. Abacus shows you >>
What are your purchase options?
We begin any transaction by first understanding your needs. Then we tailor a purchase option that best maximizes your note and needs.
Most note that we purchase fall into three categories:
Full Purchase: In this situation we buy all remaining installments and balloon if applicable.
Partial Purchase: In this situation a seller may elect to only sell part of their note to meet a current financial need. We would then purchase a certain amount of monthly installments for an agreed upon price. After we have received the predetermined number of payments the note reverts back you the seller at which time the seller can elect to either continue receiving payments or sell the remaining balance to Abacus.
Split Disbursement: In this situation the seller would again elect to only sell part of their note. The difference being in that with split disbursement the seller will receive a reduced monthly payment from their payer. Note holders split their monthly income allowing them to still receive a monthly income from their note while having only sold part interest for a predetermined time period in exchange for cash now.
Abacus shows you >>
<<Inflation At Work
Time Value of Money & Inflation
Scenario You are receiving $800.00 per month for 20 years on a mortgage note paying 10% simply interest. At a 4% rate of inflation per year or .00333% per month your $800 is really buying $2.67 less each month!
Your mortgage note will never be worth more than it's worth today!
<<Simple Vs. Compound Interest
Time Value of Money At Work Scenario 1
$80,000 @ 10% simple interest for 20 years will yield you a total $185,282.90. This is basically your normal mortgage.Vs.
Scenario 2
Invested proceeds from sell of your note is $65,000 @ 10% compound interest for 20 years will yield you $437,287.00 or about 2 1/2 times more! This makes more cents.
<<Selling Your Note
Selling Your Note Things to consider: How can other mortgage note buyers provide you a qualified offer simply based on the note structure? At Abacus Mortgage Note Company we require detailed information regarding your note and needs. This is the only way to ensure we both maximize the sell of your note and meet your needs.
Regardless of who you decide to sell your mortgage note to, ensure that you fully explain your situation and cash needs. You do not have to sell your whole note if you needs are say to sell just enough of your note for another investment or a vacation.
<<Value Of Notes
Value Of Notes Value of your note depends on several factors some are: - Loan to Value
- Credit of Payer
- Number of Payments Made
- Payment HistoryWe will maximize the sell of your note. Submit your note today!
<< Purchase Options
Purchase Options Full Purchase: Depending on factors of your note we purchase say your $80,000.00 note for $71,000.00 out right. Partial Purchase: Say you have a $80,000 30 year note paying $775. We would buy the next 3 years of payments for $11,000. After those three years the note reverts back to you with a remaining balance of $78,842.
Split Disbursement: We would buy 1/2 of the each monthly payment for next 3 years for $5300.00 and you would still receive $310.00 monthly. After three years again the note reverts back to you.
Note: Each mortgage note or deed of trust is different and is subject to evaluation before we can make a qualified offer.
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