However, once you understand the reasons why selling mortgage is beneficial for someone that does own the property, you may be better motivated to investigate this option more thoroughly.Cash in hand.How much do you get paid every month for the mortgage payment? How much is left on that note? When selling mortgage, you receive a lump sum payment versus the monthly payments you have trickling in from your borrowers. The amount will vary according to the value of the home or building and according to how much is left on that loan, but it means having cash in hand versus payments every month. This is typically the reason many investigate selling mortgage.Why you want cash in hand now versus the small payments every month is your prerogative. You may need a lump sum payment for personal reasons, such as for retirement, to meet medical expenses, or to invest in other business opportunities and properties.
Having that cash in hand is typically the main reason someone would investigate selling mortgage.Walking away.While a lump sum payment is good, you may simply want to opt out of the entire loan process. Remember that selling mortgage means not just getting the cash in hand but it also means walking away from your side of the loan itself. Some investigate selling mortgage because they simply don’t want to worry about the tax preparation or the monthly accounting that’s necessary. Whatever the reasons you have, it’s good to consider how this might benefit you versus the loss of that regular monthly payment.There are legal limitations to selling mortgage and again, you may not get the entire amount that is due to you on that note. However, each arrangement is different and each buyer is different in their terms. If you feel that selling mortgage is the best option for you, review all your mortgage paperwork with a lawyer and find out about your choices, and discuss the details with a buyer before going forward.