What If You Could Sell Your Seller Financed Mortgage Note and Keep It Too? The Partial Sale Strategy Most Note Holders Never Hear About

What If You Could Sell

Your Seller Financed Mortgage Note

and Keep It Too?

The Partial Sale Strategy Most Note Holders Never Hear About

Most people holding a seller financed mortgage note assume there are only two options.

Keep collecting payments every month.

Or sell the note, take the discount, and say goodbye to the monthly income. Forever.

There is a third option. And almost nobody knows it exists.

It is called a partial sale. And for note holders who qualify, it changes everything.

What Is a Partial Sale?

A partial sale is exactly what it sounds like.

Instead of selling your entire note, you sell a specific number of future payments to a note buyer. You receive a lump sum of cash now. Your buyer keeps making their regular monthly payments the entire time, though they will now send those payments directly to the note buyer during the partial period. And when those payments are done, your note comes back to you.

Cash now. Note back later. Monthly income restored.

Nothing about your original agreement with your buyer changes in terms of what they owe or how much they pay. They just send their payment to a different address for a period of time.

How Does It Actually Work?

Here is a real example.

Sarah holds a seller financed mortgage note with a balance owed of $200,000. Her buyer pays her $1,467 per month at 8% interest. She has 22 years remaining on her note.

Sarah needs $45,000. Her daughter is getting married and she wants to help without going into debt.

She does not want to sell her note. She worked hard to create that monthly income and she does not want to lose it permanently.

So instead Sarah sells 36 monthly payments to a note buyer.

The note buyer pays Sarah a lump sum today in exchange for receiving her next 36 payments directly from her buyer.

Sarah gets her cash now. Her buyer keeps paying exactly as agreed, just to a different address for 36 months. And after 36 months, those payments start coming back to Sarah again.

Sarah funded her daughter's wedding. And she still has her note.

Why a Partial Sale Often Makes More Financial Sense Than Selling the Entire Note

Here is what surprises most note holders when they first hear this.

The total cash from a partial sale often beats what they would receive from selling the entire note outright.

Here is why.

When a note buyer prices a full note purchase, they are taking on the risk of every single remaining payment. Twenty two years of payments. A lot can change in twenty two years. They price that risk accordingly, which means a steeper discount off your balance owed.

Sarah's $200,000 note with 22 years remaining might sell for $140,000 to $155,000 in a full sale depending on her note's risk factors.

Her 36 payment partial? Those 36 payments total approximately $52,800. Sarah walks away with possibly around $45,000 in a lump sum today for just three years of payments, and likely closer to that number because the note buyer is only pricing risk on 36 months instead of 264. Less time. Less risk. Better pricing for Sarah. And she keeps the rest of her note.

But here is what makes the partial sale strategy so powerful. If Sarah only needs $45,000 right now, why would she sell a $200,000 asset and walk away with $140,000 to $155,000 when she could sell just three years of payments and keep everything else?

She would not. And now she does not have to.

Here Is Where It Gets Even More Interesting

Some note holders use partial sales strategically over time.

Instead of one full sale, they do multiple partials. Each time they need cash they sell another window of payments. And here is what most people never consider.

With each successive partial, two things are working in Sarah's favor.

First, the note buyer is always pricing risk on a shorter window. Thirty six months of risk instead of the full remaining term. That alone means better pricing every time.

Second, by the second, third, and fourth partial, Sarah's buyer has now established a proven payment history with that exact note buyer. The buyer has watched those payments arrive on time month after month. The relationship is established. The risk is demonstrably lower. That translates into even more favorable pricing with each successive partial.

So Sarah is not just getting better pricing because of the shorter time window. She is getting better pricing because her buyer has proven himself to the market over time.

By the time Sarah has done multiple partials, the total cash she has extracted from her $200,000 note could significantly exceed what she would have walked away with in a single full sale on day one.

That is not a loophole. That is simply understanding how note valuation works and using it to your advantage.

Not Every Note Qualifies

Partial sales are not available for every seller financed mortgage note. Note buyers look at specific factors when evaluating whether a note qualifies and what the partial is worth.

The only way to know if your note qualifies and what it might be worth is to have someone who actually knows how notes are valued take a look.

That is exactly what we do at Moxxie Asset Group.

About Moxxie Asset Group

Moxxie Asset Group works exclusively with seller financed mortgage note holders across the United States. We help note holders understand exactly what they have, know all of their options, and make informed decisions, whether they ever plan to sell or not.

Want to know if your note qualifies for a partial sale and what it might be worth?

Call 352-99-LEARN (352-995-3276) and our Senior Seller Financing Advisor Dawn will personally reach out to discuss your options. There is no cost, no obligation, and no pressure. Just an honest conversation about what you are holding.