Payment Streams (mortgages, notes, business notes, structured settlements)

• What is a simultaneous closing?

Basically, a simultaneous closing is two separate closings occurring simultaneously. The first closing passes the Title to the property from the Seller to the Buyer. At this time, the Owner-Finance note is created, and the Buyer becomes responsible for making monthly payments. Subsequent to the closing and recording of the property sale, a second transaction occurs wherein the note that was created during the "first closing" is sold to MidWest Notes.  The result is that the Seller obtains cash at closing, and the Buyer is able to purchase the property by avoiding traditional Bank or Mortgage Company financing hassles. A win-win solution for all parties!

As with all real estate transactions, there are important cost/benefit and legal issues to consider from the perspective of all parties.

• How much will I receive for my payments?

Because United Mortgage Co. (UMC) will provide you with a lump sum of cash now for the right to receive your future payments, the price you will receive is typically discounted from the current value of the instrument. The amount of the discount depends on a number of factors that vary depending on the payment stream. For example, important factors impacting the value of a mortgage include such things as: the type of property serving as collateral, the credit quality of the payor, whether the payor lives in the property or holds it as an investment, the interest rate and maturity date. Factors impacting the value of a Business Note also include: the type of business, its longevity and financial success.

• How long does it generally take to receive my money after I provide the required information?

Real Estate Backed Note/Mortgage: 1-2 weeks
Business Note: 2 weeks
Structured Settlement: minimum 3 weeks (see below)

• Do I have to collect payments before I sell?

No. We will provide you an offer to purchase your payments regardless of whether you have collected your first payment.

• What Are My Costs?

You pay no points or fees. The amount that we quote is the cash you will receive.

• Can This  Be Done Through  the  Mail ?

Yes, the sale of your mortgage can be completed easily and confidentially through the mail or in person.

• Will the Terms of My Mortgage Note Change ?

Absolutely not.  The sale of your note never changes the interest rate of your mortgage note, the monthly payments or any other term of your mortgage.

• Is This a New  Idea ?

No. Banks and individuals have been selling notes for years. This is a simple and easy way for you to obtain cash.

• I am interested in offering owner financing to speed up the sale of my property or business, and then turn and sell the financing to MidWest. Can you advise me on how to best structure the transaction to ensure that I will receive the maximum amount possible for my financing when I sell it?

Yes. We will suggest the "best" structure (ex. interest rate, terms, etc.) for your financing so that its worth will be maximized should you sell it in the future. We will provide you with this information after you tell us about your prospective transaction.

• I am unable to obtain "traditional" financing and am interested in educating the Seller of the property or business about his/her ability to offer me Owner-Financing and then immediately sell the financing to you. Can you guide me?

Yes. This is known as a "simultaneous closing." We will provide you this information after you tell us about your prospective transaction.

• Will you buy all of the remaining payments?

For real estate-backed payment streams, we will often provide you with an offer to purchase all of the remaining payments (full purchase). In certain cases, we will offer to purchase only a certain number of payments, with the remaining payments returning to the recipient (partial purchase). Partial purchases are much more common with sales of business notes and structured settlements.

• What is a business note?

A business note is the promissory note you receive when you finance part of the selling price or your business. The note is normally not secured by real estate  -  it is secured by the assets and goodwill of the underlying business.

• What is a structured settlement?

Generally speaking, a structured settlement is a legal agreement between two parties whereby one party agrees to make payments over time in exchange for their release of liability to the other. The settlement is usually associated with personal injury claims in which the plaintiff agrees to accept annuity payments from an insurance company in exchange for their release of liability against the defendant who purchases the annuity on behalf of the plaintiff.

• Is it true that I may have to go to court in order to sell my structured settlement?

Most states require certain disclosures and a court review to determine if the sale of the settlement or a portion thereof is in the best interest of the seller, taking into consideration the welfare and support of the seller's dependents. All of this is handled for you at our expense. If a court review is required, we are at the mercy of the court schedule for final approval.