Everyone is familiar with traditional mortgages that are created through a mortgage company or a bank. The type of mortgage or real estate note that Sovereign Funding Group is interested in are seller-financed. Simply stated, a seller-financed note or private mortgage note as it is often called, is a promissory note a buyer gives a seller in exchange for a piece of real estate.

A seller-financed note or private mortgage note, serves as the legal evidence of a debt and the buyer’s written promise to repay the seller over an agreed period. This binding document generally states an amortization schedule, the interest rate and all the terms that are related to the debt and its repayment.

Seller financing became more common during the 1970s and 1980s when the interest rate on conventional mortgages skyrocketed way beyond what most people could afford. Needless to say, sellers of real estate could not find qualified buyers and so they devised a system that would ultimately attract buyers. This was the beginning of the private mortgage industry. The seller would create a mortgage note which was held for a specified period, during which the buyer made direct payments to the seller.

These private mortgages have considerable advantages over their conventional counterparts. They offer the following:

- Faster sales and closings
- No origination fees
- No mandatory mortgage title insurance
- Optional credit checks
- Optional surveys and appraisals

Real Estate sellers often choose to finance the loan themselves because they have no other option at the time, and buyers for the most part agree to this type of financing because they don’t qualify for the traditional loan. Many sellers are therefore very willing to sell their monthly payments for a lump sum cash settlement. These are the clients that Sovereign Funding Group seeks to do business with. So if you’re a broker or a seller, please submit your note for immediate consideration.

Feel free to contact us anytime for a free no-risk consultation toll-free at (877) 836-4661 or email us if you have any questions.