In today's volatile economy, many note holders are seriously evaluating whether to sell their mortgage note or not. So what are the advantages and disadvantages? Let's start with the disadvantages.

Disadvantages of Selling a Mortgage Note:

1. First and most obvious, once you sell your note your monthly income is gone forever.
2. If you had a significant gain on the sale of the home that you have spread over the life of the note, you may have to show all of the remaining gain once the note is sold. (Consult your tax adviser.)
3. You will take a discount on the remaining note balance due to the time value of money.

Advantages of Selling a Mortgage Note:

1. You receive a significant lump sum of cash, usually very quickly.
2. You can utilize this cash for lucrative business opportunities or just as a cushion for these tough economic times to ease anxieties.
3. You no longer are at risk of a default on the mortgage note and the hassles of having to foreclosure.
4. You no longer have to worry about whether the mortgagor has paid their property taxes or maintained the home.
5. You don't have to keep monitoring the tax office to see whether the mortgagor has any new liens on the property from a second mortgage or federal or state taxes, etc.
6. Lastly, you no longer have to keep detailed records on the mortgagor's payment history or report interest payments to the tax authorities.

Well there you have it, the pros and cons of selling a mortgage note. Good luck with your decision.