Cash for your Trust Deed Note

If you are the owner of a note secured by Deed of Trust (also known as a Trust Deed or Mortgage Note) on California Real Estate and are entitled to receive payments, you can usually turn it into cash.

This is possible whether the payor (borrower) is living or deceased or if the note owner is deceased and their estate is in probate or in a trust.

The most common situations that we encounter are that:

  • Loan was made to a friend or other family member and no one wants to be the “bad guy”
  • Loan was created from the sale of a property formerly owned by the deceased person
  • Person paying on the note is deceased and the note holder is uncertain as to how to proceed to collect or if a probate has even been opened

Even if you are supposed to be on the receiving end and no action has been taken yet we can help you turn it into spendable money.

Several Reasons to sell your mortgage Note:

  • Need cash to close probate
  • Provide liquidity (spendable money)
  • Heirs or beneficiaries can’t agree
  • Property has problems or lost value (or declining neighborhood)
  • Senior mortgage or taxes are delinquent
  • Payor is a family member or friend
  • Payor(s) has stopped paying or gone silent

Who can sell Note if Original Note holder is deceased?

  • Administrators (Will or No Will)
  • Executors of estates
  • Special Administrators
  • Trustees & Co-Trustees
  • Conservators & Guardians
  • Private Fiduciaries & Public Administrators
  • An heir for which the note is the sole asset of the decedent
  • Any other adult note owner

What’s my Note worth?
Since no two notes are exactly the same due to different borrower payment histories, repayment terms of your note, the market value of collateral property and documentation

The value of a given note is established by a number of factors, including: loan position (i.e., 1st, 2nd, etc.), current market interest rates, the type and location of the property, condition of the improvements, structure of the note and mortgage, credit of the payor, priority position, interest rates, and much more.

It’s because of this that no two notes are likely to have exactly the same value. Also, there are at least several different ways to sell your note:

Full Purchase: Seller receives lump sum cash for all remaining monthly payments (and balloon payment if applicable). This option provides the largest amount of cash, takes the seller out of the note completely, removes the hassle of collecting future payments, and transfers any risk of foreclosure to the buyer.

Partial Purchase: Seller receives lump sum cash at closing for a portion of future monthly payments. Seller resumes collecting the remainder of monthly payments in the future.

Partial Balloon Purchase: (for balloon notes only). Seller receives lump sum cash at closing for all remaining monthly payments and a portion of the balloon amount. Seller gets the remainder of the balloon when received from payer.

Example Of A $90,000 Note on Which a Seller is Receiving Payments

Sale Price                 $95,000
Down Payment           $5,000
1st Mortgage              $90,000
Current Balance        $84,257
Loan To Value                 89%
($84,257 divided by $95,000)
$90,000 Face Value Note
10% Interest Rate
15 Year Term (180 Payments)
$967.14 Monthly Payments
24 payments have been made. Current Balance is $84.257.19

Some of the Options Available to the Note Holder
1. Do nothing. Continue receiving the remaining 156 monthly payments of $967.14.

2. Full sale. Sell the entire note now.
Note holder receives: $76,233.18 cash now

3. Partial sale-front end payments. Sell the next 5 years of payments (60 payments). Then receive the last 96 payments.
Note holder receives: $40,653.34 cash now
Plus $63.736.86 loan balance in 5 years
$104,390.20 total cash to note holder

4. Full sale – split funding. Sell one half of the note (the next 78 payments) now and the other half of the note (the remaining 78 payments) after the first 78 payments are paid.
Note holder receives: $48,010.47 cash now
Plus $48.010.47 cash in 78 months
$96,020.94 total cash to note holder

5. Partial sale – one half of each monthly payment. Sell one half of each monthly payment and continue to receive the other half.
Note holder receives: $33,114.72 cash now
Plus $483.57 per month for 156 months

How Long Will it Take to Receive Funds?
Generally, after we have received the necessary documents and information, it usually takes only 10 working days to process and record the documentation and complete the sale.

Will Selling My Note Have An Effect On The Person Paying Me?
No. All terms and conditions set forth in the original note and mortgage remain in force. The only change will be to whom and where future payments are sent.
Depends on remaining balance

To get started:

  • Watch the videos, especially the “Cash for Your Trust Deed Note” video and read the articles & reports that apply to your own estate or trust situation
  • Complete and submit the online questionnaire
  • Have your Note and legal paperwork available
  • Schedule your free, no-obligation Note Sale consultation

The next step is:

  • We’ll review your Note & Documents
  • Provide you a Written Note Purchase Proposal
  • We’ll schedule a follow up phone consultation
  • Open escrow, fund & close your sale transaction

Cash for your Trust Deed Note is for…

  1. Owner of a Note
  2. Entitled to receive payments
  3. Secured by Deed of Trust (T.D.)
  4. On California Real Estate
  5. Payor Living or Deceased
  6. In probate, trust or not

Reasons to sell your mortgage Note

  1. Need cash to close probate
  2. Provide liquidity (spendable money)
  3. Heirs or beneficiaries can’t agree
  4. Property has problems or lost value
  5. Senior mortgage is delinquent
  6. Payor is a family member or friend
  7. Payor(s) has stopped paying

Who can sell Note if Original Note holder is deceased?

  1. Administrators (Will or No Will)
  2. Executors of estates
  3. Special Administrators
  4. Trustees & Co-Trustees
  5. Conservators & Guardians
  6. Private Fiduciaries & Public Administrators
  7. An heir for which the note is the sole asset of the decedent

What’s my Note worth?

  1. Depends on remaining balance
  2. Repayment Terms of Note
  3. Value of property securing
  4. Loan position (i.e., 1st, 2nd, etc.)
  5. Current market interest rate
  6. Borrower payment history
  7. Documentation

Can I sell part of my Note?  Yes!

  1. Sell just a portion to raise cash
  2. Part of the remaining principal, or
  3. Part of the remaining payments
  4. Or keep your balloon payment
  5. Many different ways to sell a Note
  6. Can close when you chose to
  7. Over 20 years experience buying notes
  8. “Problem” notes don’t scare us

Getting Started…

  1. Submit Online Questionnaire
  2. Click the “Get Started” Button
  3. Review Note & Documents
  4. Phone Consultation
  5. Written Note Purchase Proposal
  6. Open escrow, fund & close sale

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