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The best time to sell your note

An investment of note is a valuable asset, and the decision to sell only can answer on the basis of individual needs. It is a fact that interest rates are now at their lowest point, what investors find notes that have been funded in best conditions more attractive and certainly will have to pay more for the notes.

Research shows that about 37% of all borrowers who are 60 days late on payments of the note will remain late. In addition, studies show that about 21% of all borrowers who are 60 days late on payments in arrears, then foreclosure.

Error # 1 that can arise as the holder of a contract will occur if they do not make their task at the beginning of the process. If they did a bad job in obtaining as much information available on the creditworthiness of the borrower, or not the structure of the account for your protection, the sale of your note should be an option to consider. In addition, if not to facilitate an exit in the case of the new circumstances strategy, this may also be the best time to consider the sale of its note.

Sell premium or structural adjustment for your cash

If you have difficulties to keep tabs on the critical dates, such as the payment of taxes and insurance renewals, it is necessary to re-evaluate their work as holder of the note. Be a holder of a note is a full time job, because like a job, the note provides a monthly income. The person who pays you monthly to your account must have a copy of your collection process should be a delay in the payment or problems to make payments according to their contract. If the borrower provided signs that indicate problems in the future, you may consider the settlement.

It is a fact known to the majority of the holders of the notes never really wanted to note, first, and once he realized the risks inherent decides to sell. Smart notes holders learn from their mistakes and get out from under a note of poorly structured or one with potential problems until it is too late. There are several good questions that needs to be done to determine if your note is a good idea, or if it would be better if you sell it. Here are some questions to ponder:

Do you understand the risks involved in the celebration of a note?

Would you like to be affected if there is a default in payments?

You have any debt that is paying interest on?

Is the interest on that debt greater than the interests that are collecting in your note?

Do many more payments are due to you, and you need a bit of money before the end of the contract?

What are you doing with monthly incomes of the note? You are wasting money or you have the discipline to invest this money in other flows of cash, savings, vacations, etc?