Oklahoma, the 20th biggest state in the U.S., has a diverse landscape of plains, lakes, and forests. While a wide variety of financing tools have been used to sell houses, buildings, and land, owner financing has played a big role in many transactions. Using owner financing, a seller and potential buyer of a property can negotiate the details of a transaction without involving a bank. Later, the seller can either make the decision to “keep my note” or “sell my Oklahoma mortgage note.”
Let’s first step back to the creation of the note. Before you put your property on the market, think about what you will require in terms of sales price, interest rate, term, etc. In addition, consider what amount of down payment that you will need and the characteristics of your buyer. To make your note more secure and marketable, aim for:
- Getting at least a 10% down payment if you are selling a house to someone who will live in it. For other situations, try to collect 20% down.
- Selling to someone with a good credit history and a high credit score. While this does not guarantee that the buyer will never miss a payment, it shows their character and ability in paying their previous debts.
- Having an attorney knowledgeable in real estate to prepare all of the needed documents.
Once you have found someone meeting most of your criteria and have begun collecting payments, you have options to consider. You might think “I’d like to sell my Oklahoma mortgage note.” If that is the case, see the steps below. If you are leaning toward keeping your note, at least consider some of the risks:
- Late payments or non-payment by the buyer.
- Lapsed fire insurance or property tax payments
- Significant damage to the property, whether from a natural disaster or due to buyer negligence, which can severely affect the property value.
- Outliving your note. If you are 65 years old and set up a 30-year note, how likely is it that you will be around for your 95th birthday?
Selling an Oklahoma Mortgage Note
If you decide to sell your note, you will find a number of mortgage note buyers out there. Some are excellent, while others are clearly not. Look for a company and individual:
- With at least 5 years of experience in the industry.
- Licensed in their home state, even if they do not reside in Oklahoma.
- Having the highest rating by the Better Business Bureau
- With no negatives when you do an online search of that company
Of course, also listen to your own instincts to decide if they trustworthy and are likely to treat you well.
Once you have chosen a mortgage note buyer and you have agreed on a price for your note, here is the normal process:
- Note buyer will request copies of all of your documents and review them.
- They will order a drive-by appraisal to ascertain the property value.
- The note buyer will next order a title commitment, at their own expense.
- Once the above steps are completed and approved, you will be sent assignment documents, which you will sign and send back with your original note.
- In less than a week, the funds will be wired to you.
Seascape Capital has an A+ rating with the Better Business Bureau and has been in business since 2002. Seascape has been involved with a number of Oklahoma mortgage notes.