Mortgage Note Basics
If you have a mortgage, you also have a mortgage note. At Seascape Capital, we understand that the real estate financing process can be confusing and complicated, but we strive to walk you through the process so that you have a more enjoyable and beneficial experience. One of the most common questions that we receive is what is a mortgage note. Well… basically a mortgage note may also be called a promissory note or a real estate lien note. It is the written agreement that a property owner signs when taking out a mortgage. The mortgage note specifies the amount of money that was borrowed, the terms of the loan and the length of the loan term.
When you ask what is a mortgage note, you should also understand that when you sign a note, you are legally obligating yourself to repay the money and in the manner specified in the note. When you do not, the owner of the note may have the legal right to take action against you, such as to foreclose on the property.
In some cases, the note holder is a large company, such as a mortgage company or lending institution. In other cases, the note holder is a private party or individual. For example, if a property was owner-financed, the original owner of the property will hold a note that has been signed by the new property owner. This means that the original property owner will collect monthly payments from the new property owner. While this can be lucrative and beneficial, some note holders would prefer to sell their note and remove themselves from the responsibility associated with being a note holder.
Seascape Capital can assist you with this process. If you are currently holding and servicing a mortgage note, you may be interested in learning more about what your legal options are and how you can sell the note for cash. At Seascape Capital, we specialize in assisting people with all of their mortgage notes needs. You can contact our office today by phone or email to learn more about how our services can help you.