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Why would I want to cash in my Receivable? |
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There are many reasons to cash in your receivable, but the most common reason is to simple replace the regular payments they are receiving with a "lump sum" of cash. Whether you need cash to pay for a child's college tuition, or to take the family on a Caribbean Cruise, selling your receivable may help you accomplish your goal. Usually a note is acquired in lieu of the cash actually desired during a real estate sale.. If retained long enough, many notes will eventually pay off. However, by selling all or part of a mortgage you will never again have to worry about: - Collecting the payments
- Default and Foreclosure
- Destruction/devaluation of the property
- Federal Income Tax reporting require ments
- Bankruptcy of the payor
- Divorce or death of the payor
- Abandonment of the property
- Deficiency judgments
- IRS tax liens/other liens against the payor
- Assumption of your note by another payor
What Are Some Common Reasons People Sell Their Notes? - To pay off debts with a higher interest rate
- To pay unexpected debts such as hospital bills
- To pay for tuition, vacations, or new cars
- To settle estates or divorces
- To relieve bookkeeping and collection burdens
- To invest in a business, stocks, real estate or other more profitable venture
- Tired of collecting small monthly payments and want to enjoy the cash now
- Did not want to carry the note in the first place
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