Mortgage Note Sale Underwriting

The Mortgage Note Sale Underwriting Process

Even if you receive what you believe to be a really good quote for which you are anxious to get paid, getting your full amount (or any amount at all) could depend on the results of the underwriting process.

The underwriting process involves the due diligence done by the note investor in the same way that a bank lender would go through the due diligence process before formally approving the issuance of a new mortgage loan.  It is done to verify the financial information regarding the mortgage promissory note seller and the mortgage itself.

Underwriting Documents

Meeting the underwriting requirements for the sale of a mortgage note involves the collection and review of many documents including the following.

1) A copy of the owner-financed mortgage promissory note.


2) A copy of the contract document that lists the property as

collateral for the note (Trust Deed, Land Contract, etc.).


3) A copy of the title insurance policy.


4) Proof of property insurance.


5) Proof of payments already paid on the note.


6) Copies of any other notes associated with the property sale.


This list is not to be confused with what is required for just a quote for your mortgage note.  What is required for a quote is simply information to be filled out on a form (these days this can be done online). 

For underwriting, the mortgage note broker or investor will need the actual documentation either faxed, scanned and sent through email, or even sent through the mail.


 

 


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Mortgage Promissory Note Underwriting Requirements