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The “Beehive State” is our country’s 13th largest and 33rd most populous state.  Houses and other property types can be sold in a variety of ways, one of which is owner financing.  With owner financing, a bank is rarely involved.  The transaction is only between the buyer and seller, who create a note and other documents.  The seller of the property can choose to eventually sell to a Utah note purchaser.


Starting Out

Many property owners are not aware that owner financing is an option to help with selling their property.  While it is not suitable for all situations, it can be a good way for the seller to close more quickly and gain extra profits.  The owner does need to do a little homework at the beginning.  First, he or she must decide on an appropriate sales price and what need to be the qualifications for a potential buyer.  In addition, the person should think about what terms to include.  This would include the note length, interest rate, default provisions, etc.


Once the property owner is ready and a buyer is found, the two parties can discuss and agree upon the price and terms.  The owner will want to make sure that the buyer has a decent credit score and the ongoing ability to make the required monthly payments.  An attorney or title company should create the needed documents that both sides would then sign.  After, the property buyer can take over the property and being making payments.


Why Sell a Note

Once the property seller (note holder) has begun receiving payments, they have the option of selling the note to a Utah note purchaser.  At first, it may seem counter-intuitive to sell a note after working hard to create it and starting to receive payments.  However, being a note holder can be risky.  Some of the risks include:


  • New owner not keeping up with property taxes
  • Owner not paying premiums for the fire insurance coverage
  • Owner being late on payments or missing some altogether
  • The owner not maintaining the property, thus affecting its value.


For a longer-term note, the note holder must also consider whether the new owner will realistically make on-time monthly payments for the next 20 or 30 years.


Selling the Note

The note holder can choose to sell the note, which provides a lump sum of cash up front and avoids later risks.  As there are a lot of Utah note purchasers, the person will want to make sure that the company they choose is competent, experienced, and well-reviewed by previous note sellers.   When such a note buyer is found, the note sale process generally looks like this:


  1. The company buying the note will check the new owner’s credit to make sure that it is acceptable.
  2. The note buying company will put their offer in writing and ask the note holder to send over copies of relevant documents like the note, deed of trust, and closing statement.
  3. The note buyer begins its due diligence by reviewing the documents and ordering a drive-by appraisal of the property.
  4. The note buyer would next order a title commitment.  Most of the time, the note buyer will pay for the appraisal and the title commitment, as well as other associated expenses.
  5. Documents would be prepared to take assignment of the note and be sent to the note holder.
  6. The note holder would return the signed documents along with the original note and deed of trust.
  7. Within 2-5 business days, the note holder would receive the funds via wire or check.  From beginning to end, the whole process takes 4-5 weeks.


Seascape Capital has been in business since 2002.  Seascape has an A+ rating from the Better Business Bureau and is one of the most respected note buyers in the country.


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To ask questions or for a pressure-free discussionCall 1-800-634-4697