How much is a mortgage note worth?
The value of a mortgage note depends on several variables. Reputable buyers may offer around $0.70 on the dollar for the remaining principal balance, depending on the amount of risk they must take on should they purchase the note.
What does it mean to sell a note in real estate?
Selling a note has means that the financial institution can avoid additional costs, while investors have the opportunity to purchase either a performing or a non-performing mortgage, often at a discounted rate. Millennium Properties is frequently asked to market commercial real estate notes for sale.
Can I sell my note to a bank?
Some notes have underlying debt, a situation where the holder of the note (the seller) owes money from the purchase of the property on the note to a bank or financial institution. In this situation, the note can still be sold so long as the debt does not exceed the offer for the note.