In order to ensure a smooth note transaction, it would be wise, as a well informed note seller, to have the following documents available before submitting you note to a Note Investor for purchase. These are documents that you, your attorney, or your real estate agent should have on file from the sale of the subject property.
The documents are as follows:
Copy of Note
Copy of Trust Deed, Mortgage or Land Contract
Escrow instructions from real estate sale in which the “Contract” was created
Escrow closing statement from real estate sale in which the “Contract” was created
Title insurance policy which insures the “Contract”
Fire insurance information on the property which secures the “Contract” (Insurance Company, Policy Number, Agent’s Name and Address)
Loan Payment Record (if possible)
Appraisal from the time of sale or thereafter (if possible)
Please provide two (2) pictures of subject property (if possible)
Copy of street or city map showing property location (maps.google.com)
Plans, surveys or other documents in your possession (if possible)
Tenant Rental Agreement (if applicabale – rental property note)
Once these documents are in order go forward with submitting your mortgage note for purchase to a note buyer. Usually with the more experienced note buyers you can fill a quick submission form online.
After submitting your note, it should take 48 business hours to receive a Soft Bid. The definition of a soft bid is; the preliminary dollar amount a note investor is willing to purchase, prior to verification of information.
Once the soft bid is agreed upon, the note investor does some preliminary investigating into the note info submitted (i.e. credit score, property value, etc). This usually takes 72 business hours.
The soft bid is subject to change if the original note info submitted is inaccurate. That is why it is very important to be as accurate as possible when submitting your note submission form in the beginning. This way nothing will change over the course of the underwriting period and you will get the money you need. The more detailed and prepared you are, the less you have to worry about!
Once the preliminary verification takes place the note investor will confirm the Firm Bid to the note seller.
Once the firm bid has been confirmed and all the above documents are in the possession of the note buyer , the underwriting process will begin. This includes, ordering drive by appraisal, checking title for liens, verifying all note info.
Closing instruction and date will be set up and the transaction is closed.
From front to Back, assuming all of above documents are in your possession, it should take 2-3 weeks to receive your check.