Missouri notes come from Kansas City and St. Louis houses, Ozarks acreage, lake property and farmland. We take yours to competing buyers and show the worksheet behind every number, with a partial option where it fits.
Where a Missouri note holder loses money before the first bid.
The same worksheet comes with every offer.
| Remaining balance | $129,400 |
|---|---|
| Payments left | 168 |
| Buyer’s target yield | 8.0% |
| Purchase price | $115,000 |
| Discount from balance | 11.1% |
| Our fee | shown on every offer |
| Sell the whole note | Sell 60 payments | Keep it | |
|---|---|---|---|
| Cash today | $115,000 | $56,200 | $0 |
| Payments still coming to you | None | 108 payments of $1,140 | 168 payments of $1,140 |
| Total you receive | $115,000 | $179,320 | $191,520 |
| What you give up | Every future payment | The next five years | A lump sum now |
Illustrative example. Totals add up the payments as scheduled; they assume the payer keeps paying and are not adjusted for the value of money over time.
The promissory noteThe mortgage or deed of trustA payment historyThe closing statement from the saleBoth of Missouri’s big metros cross a state line. A house in Kansas City, Kansas or in the Illinois suburbs of St. Louis follows that state’s rules, whatever your own address or the payer’s, and you will want the Kansas or Illinois entry in our state guides. Everything on this page concerns property on the Missouri side.
Within Missouri, notes come from two worlds. In Kansas City and in St. Louis city and county, investors fix up older houses and sell them with owner financing, and long-time owners do the same when they move on. Springfield, Columbia and Jefferson City add more. The rural and recreational side is wooded acreage in the Ozarks, vacation property at Lake of the Ozarks and around Branson and Table Rock Lake, and farmland across the northern half of the state.
Missouri sellers commonly secure a note with a deed of trust. It names the borrower, you as the lender, and a trustee. If you are unsure whether you hold a deed of trust or a mortgage, our explainer on how a mortgage and a deed of trust differ will help you read your own document.
Foreclosure in Missouri is commonly non-judicial. The deed of trust generally gives the trustee a power of sale, so after a default the trustee can give notice and sell the property without a full lawsuit. Court foreclosure exists as well. In rural Missouri you will also meet the contract for deed, where the seller holds title until the last payment, and that is handled differently. None of this replaces a reading of your own documents by a Missouri attorney or title company, who will also know of any recent change in the rules.
A buyer is purchasing a stream of payments and wants a set return on their money, so they pay less than the balance. Missouri facts feed into how much less, as follows.
| Feature | Effect on price |
|---|---|
| Trustee’s sale available | Supports the price, because recovery is expected to cost less than a court case. |
| Rehabbed city house, recent sale | Buyers want proof of the work and of the down payment. A short payment record lowers the price. |
| Lake or vacation property | Some buyers take primary residences only, so the group is smaller. Those who bid ask whether the payer lives there or rents it out. |
| Ozarks acreage | Road access, a survey and a clear legal description carry extra weight. |
| Contract for deed | Priced apart from deed of trust notes, by a smaller group of buyers. |
Two notes with the same balance can draw quite different offers for the reasons in the table, and so can one note shown to two buyers. A single quote therefore tells you little about whether it is fair.
When you start a quote for your Missouri note, have the promissory note, the recorded deed of trust, your closing statement and a record of the payments received. Then read each offer against the others. That is most of how to compare offers on your note: the return the buyer priced for, the adjustments made, and what the buyer assumed about the property.
Deeds of trust are commonly used to secure notes in Missouri. The deed of trust names a trustee who can sell the property after a default under a power of sale. Check your recorded document to confirm what you hold.
It is commonly non-judicial, carried out by the trustee under the power of sale in the deed of trust. Court foreclosure is also available. How either would apply to your note is a question for a Missouri attorney.
Yes. Vacation and second-home property has a smaller group of buyers than a primary residence, and they will ask how the payer uses it. Solid equity and a steady payment record help the price.
Only if the property is on the Missouri side. The rules that govern the security follow the location of the real estate, not where you or the payer live. Tell us the property address and we will work from that.