In note selling, as with most things in life, timing is everything.  And today marks one of those points in history where the key economic forces at work combine to make the sale of  privately held mortgage notes a very timely and very advantageous proposition for note holders.

This is true for three fundamental reasons.  The first is necessity.  The recession has wiped out the lifetime savings and cash reserves of millions of Americans.  For many, the cash proceeds from a note sale are a lifeline to simply meeting everyday living expenses, not to mention funding any kind of a large (car, home, vacation, etc.) purchase.

The second reason that a note sale makes fundamental good sense for many is cost of money related—for example, where a person is carrying a large load of credit card debt at 18%, 20% and even higher rates.  Millions of people are in exactly that situation today.  And using their note sale proceeds to get out from under crushing credit card debt increases their monthly cash flow dramatically.

The third basic reason that people in today’s economic environment sell their mortgage note is plain and simple to earn a higher return on their investment.   When real estate can be bought today in every region of the country at foreclosure prices 40% to 60% below market, the annual yields are significantly higher than the 6% to7% rate the note holder is earning on his seller-carry-back mortgage.

Combined, these forces at work in our economy create a unique opportunity today for note sellers.   The window is wide open both to sell your note, and to sell it into a competitive market among note purchasers that places the price advantage squarely on the seller’s side.