Note Due Diligence

A note buyer will perform an investigative process known as note due diligence prior to making an offer to purchase your mortgage note.  The buyer is making a financial investment by purchasing your note. Therefore time and resources will be invested to confirm (that is, audit) all material facts regarding the sale, plus anything else deemed material to the sale.  The buyer (investor) will verify the material facts related to…

Mortgage Note Inheritance

You may find yourself in the situation of a mortgage note inheritance due to a death of someone that had previously purchased their house or property using a seller financing loan.  Whether the mortgage note inheritance was from your Mother, Father or distant Aunt Mary, you should be familiar with your responsibilities and options available to you to protect the property. Mortgage Note Inheritance A mortgage note is similar to…

Mortgage Note Care Steps

You sold your property with seller financing and now you need to invest your time for your mortgage note care.   Your mortgage note is a financial asset and of significant value, so it is important that you spend time and paperwork protecting it.  Mortgage note care is just a series of steps that you need to take and it really is not that difficult.  But, to do this right you…

Seller Financing Documentation

The quality of your seller financing documentation is an important aspect of the seller financing process between you and the property buyer.    Once you and buyer have agreed to terms, your seller financing documentation needs to comply with the 2014 Dodd-Frank federal legislation.  Basically this legislation  requires a good-faith effort on your part to confirm that the buyer has the ability to pay back the negotiated promissory note. Seller Financing…

Promissory Note and Mortgage Note Differences?

A Promissory Note and a Mortgage Note are terms that are often used interchangeably in the purchase and sale of real estate.  Each document however is different in form and purpose consequently if you are considering seller financing of property you should be clear on the differences. The promissory note is the formal binding document between the lender and the borrower.  It specifies the promise to pay back the loan…