Author: investorsfirst

Do you have a house to sell? Perhaps you’re thinking about selling, and maybe you’re thinking about seller financing. But if you have a mortgage on your house, you might be wondering, “can i do owner financing in New Jersey if i have a mortgage on the property?” We get this question a lot so we decided to answer that question here… Keep reading in this blog post and we’ll answer that question and give you some strategies to move forward…

You have options

Homeowners who are thinking about selling have several options. They can list their home through an agent, or they can list it themselves, or they can sell directly to a buyer. And, many homeowners are discovering a simple strategy called “owner financing” or “seller financing” that allows them to sell their home to a buyer and collect regular payments that pay off the house:

1. The buyer pays a down payment
2. The buyer pays regular monthly payments
3. When the agreed-upon price is paid, the title reverts to the buyer

Homeowners love it because it’s a great way to sell and a great way to find even more buyers – including those who might not be able to get traditional bank financing. Home buyers love it because it means more choices for them and they don’t have to necessarily impact their credit score to get a house.

If you own your house outright, you can do a seller financing agreement. But what happens if you have a mortgage? Maybe you’re wondering, “Can I do owner financing in New Jersey if I have a mortgage on the property?”

The short answer is: it’s complicated.

Seller financing with a mortgage

In some states, you can create something called a “wraparound mortgage” in which you extend a mortgage to a buyer (usually at a higher rate of interest) while still paying your own mortgage to the bank. However, this is not legal in all states and all situations, and there are additional clauses that you should be aware of.

Can I Do Owner Financing if I Have a Mortgage on the Property? – You have choices

If you’re unable to sell with seller financing because of a mortgage, you have other options…

An alternative that might work for you is called rent-to-own, which has some similarities (such as ongoing payment and you own the house) and some differences (there might not be a down-payment and the buyer needs to qualify for a mortgage from a bank at the end of the pre-established rental term).

If you are thinking about accepting owner financing but you still have a mortgage on your property, here’s another option for you: Get in touch with us and talk to us about your property. As experts in buying and selling real estate, we are aware of a number of options that you might not know about. We can walk you through those options and help you out ourselves or we can connect you with someone who can help you.

There has never been a better time to sell a New Jersey mortgage note or promissory note, so if you’re wondering “Can I sell a private mortgage in New Jersey?” the answer is: you absolutely can!

Interest rates are very attractive right now but that could change at any moment, and interest rates could start climbing any day now. (We at Doug Pays Cash For Houses are always paying attention to interest rates and their impact on mortgage values).

The market value of a mortgage note is inversely related to the value of the general interest rate. In other words, if interest rates go down, the market value of a mortgage note goes up. But when interest rates goes up, the value of your mortgage note goes down – which is the situation we are currently facing right now.

Can I sell a private mortgage in ?

Obviously you want to get the most you can for your mortgage note, promissory note, real estate note, or other similar real estate paper investment.

When it comes to maximizing your profit, timing is everything: Wait only a few days too long and the value of your New Jersey real estate note could plummet because interest rates increased before you took action!

If you believe that interest rates are going to go up in the near future (and the Magic 8 Ball says, “All signs point to ‘Yes!’“) then you should consider selling all or part of your private mortgage or real estate note for cash.

Here’s the next step:

Determine the cash value of your private mortgage

The benefit of selling your private mortgage payments for cash is obvious.

Cash can be used to pay off debt, invest in other investments with a higher potential yield, or simply spend it on things you need, such as a home, cars, tuition payments, and so on.

Practically every mortgage note can be sold for cash – even those notes where the payments are not being made on a timely basis.

You can get a FREE “CASH OUT” QUOTE on your private mortgage by contacting Doug Pays Cash For Houses today at (848) 299-4847 or by filling out the brief form on our website.

This makes selling your mortgage note for cash an especially attractive option if you are having collection problems or if you potentially are facing foreclosure on the property.

So, how can I sell a private mortgage in ?

It’s never been easier. If you want to sell all or part of your private mortgage before interest rates go back up, now is an excellent time to do it.

If you are interested in learning more your options for selling all or part of your real estate note in , call us at (732) 333-6520 or click here to learn more about your options and to get a fast-fair Quote on your New Jersey mortgage note payments.