Questions & Answers 
regarding the sale of a
Privately-Held Mortgage Note

Q1:  How long will this transaction take?

A1:  It normally takes around 2 to 3 weeks to complete a transaction.  The time frame can vary slightly depending on
how quickly we can get the appraisal completed and the title.

Q2:  Are you buying this note yourself or are you a broker?

A2:  I work as an independent agent for one of the nation's largest purchasers of privately-held notes.

Q3:  How long have you been in business?

A3:  I established Beneficial Brokers, LLC in 2006, but my note buyer has been in business since 1993.

Q4:  What percentage will you pay for the note?

A4:  There are many variables that come into play that determine the price paid for a note.  This includes the amount of
equity in the property, credit of the payer, length of seasoning on the note, and interest rate on the note.  We look at each
individual note on a case by case basis.  Therefore, the information that you provide is submitted to the underwriters so
that they can calculate a quote for you.

Q5:  What are all of the costs that I will incur?

A5:  You do not pay any closing costs.  Rather, the note buyer pays these for you.

Occasionally, though, if a deal looks questionable (i.e., the home might not appraise for the stated amount), then we
may state on the quote sheet that the seller will have to pay for the expenses.  In this event, we will give you an approximate
amount of expenses.

Q6:  Will your price change?

A6:  I am providing you with a quote based on the information you have provided me.  If this information is correct, then
the price will remain the same.

***We do not ever want to have to change our price.  However, if a client states on the quote sheet that the payer has excellent
credit, and then we learn that their credit is bad, then we would need to change our offer price. 

If the owner states that the property is worth a certain amount, and then after we receive the appraisal we learn that the home
has a significantly lower value, then we would most likely lower our offer price.

to the top

Q7:  What are the steps needed to complete a transaction?

A7:  To begin, please review, sign, and then fax the non-circumvent agreement to 1-800-603-9940.   After this agreement has been
received, we will ask for a signed Mortgage Purchase Agreement.  (This agreement MUST be signed by the YOU, the note seller,
before the note buyer begins processing your transaction.  The note buyer will be ordering a title and appraisal, so we want to ensure
that YOU, the note seller, are obligated by a binding contract to sell your mortgage note.) 

Then we will need to obtain the following additional documents from you:

*Promissory Note (the actual document that we will be purchasing)
*Deed of Trust, Trust Deed, Contract or Land Contract (the recorded document that secures the property as collateral for the
loan)
*Title Insurance Policy (issued by a Title Company that guarantees that a property is free of any liens)
*Settlement Statement (issued at closing and shows the down payment amount on the property, taxes paid, etc.)
*Proof of Insurance (usually in the form of a Declaration Page that shows the dates of coverage on the property and the
covered amount)
*Verification of Outstanding Balance (shows the current payoff balance on the note, and an amortization schedule is
usually requested)
*Payer's name, address, and social security number (the note buyer will need to check the credit history on ALL note
payers)
*Seller's social security number (this is ONLY for tax reporting purposes)
*Proof of Payment History (can be cancelled checks, check stubs, an accountant's ledger book, etc.  The purpose of this
information is to show punctuality in making payments.)
*Copies of underlying notes and balances, if applicable (The note buyer needs to pay off this note if there is one.  If there is
an underlying balance, then the note buyer needs the balance with a payoff date and who to pay.

After we receive the requested documentation shown above, we will order a title and appraisal.  After the title and appraisal are
received, we will schedule a closing at a local title company.

Q8:  Another company offered me $500 more.  Can you match that offer or pay a little more?

Q8:  If this happens, then we will need to “re-examine the deal” to determine whether a higher price is possible.  We would need to
contact the contract buyer to determine whether it is possible to offer you more for your note.  

to the top