THE ORIGINAL PROMISSORY NOTE DOCUMENT IS THE MOST IMPORTANT AND NEEDS TO BE KEPT IN A SAFE PLACE.
When the decision has been made to use Owner Financing to facilitate the sale of real estate documents are created. The importance of these documents to the seller(Note Holder) can be thousands of dollars. All to often, after several payments have been made on the note, have note holders decided to sell their note and not have all the note documents readily accessible. What I am about to say should be taken with the utmost importance.
THE ORIGINAL PROMISSORY NOTE DOCUMENT IS THE MOST IMPORTANT AND NEEDS TO BE KEPT IN A SAFE PLACE.
Think I will say it again to stress the importance.
THE ORIGINAL NOTE IS THE MONEY DOCUMENT OF THE NOTE TRANSACTION KEEP IT IN A SECURE PLACE.
When a note holder decides to sell their note and cash out of their monthly payments the PROMISORY NOTE DOCUMENT is what is being SOLD. If you don’t have the original note then what do you have to sell? That is like you go to buy a car with cash in hand and the seller of the car gives you a picture and tells you the car is in another state. Often is the case that a home seller will us a real estate professional like an attorney or title agent to prepare all the necessary documentation to record it with the county, a very good practice. The issue comes up several months later when the note holder goes to sell his or her note and assumes the real estate professional has all the needed documentation. The real estate professional will have copies of the documents on hand and that is helpful but rarely will they have the ORIGINAL PROMISORY NOTE DOCUMENT. One more time.
THE ORIGINAL NOTE IS THE MONEY DOCUMENT OF THE NOTE TRANSACTION KEEP IT IN A SECURE PLACE.
In this article I have tried to make it abundantly clear about the importance of the PROMISSORY NOTE DOCUMENT, but there are other documents associated with an owner financed real estate transaction. When a buyer decides he no longer wants to carry the paper and receives an agreeable offer for his note, 90% of the process that goes into that transaction is chasing the note documents. We have seen some note transactions process in 5 days others take as long as 90, in each case it comes down to the record keeping
Every note sale is different in some respect, even as far as the documentation is concerned. Here is an extensive list of documents in our most recent note purchase.
1) Original Promissory Note
2) Deed of Trust
3) Warranty Deed
4) Original Closing Statement / HUD-1
5) Purchase Agreement between buyer and seller
6) Texas Residential Policy of Title Insurance
7) Purchaser’s Closing Statement
Seller’s Closing Statement
9) Payment History Affidavit by seller
10) Dwelling declarations
11) Evidence of Hazard insurance with seller designate as mortgagee
12) Payor’s Social Security Check
13) Property Tax Status
The Texas Note Company is a group of real estate professional that specialize in owner finance strategies and techniques, we buy and sell real estate note every day. If you are receiving monthly payments and interested in Cashing out or want to know the value of your note contact us, http://texasnoteco.com/contact-us
THE ORIGINAL PROMISORY NOTE DOCUMENT IS THE MOST IMPORTANT AND NEEDS TO BE KEPT IN A SAFE PLACE.
Robert E Young is the Founding Director of The Texas Note Company. He is a Real Estate Investor who puts real estate transactions together using proven seller financing strategies and techniques. He Purchases and brokers private real estate notes often getting home sellers the cash they need to move on to the next transaction. Robert enjoys teaching and educating real estate minded people the advantages of Seller Financing and what it can bring to a real estate transaction while dispelling it’s myths. When traditional financing methods fail to provide the benefits buyers and sellers are looking for, often it is seller financing to provide a solution.
