The first time I was introduced to the mortgage note business I was told how easy it was to sell your note. Shortly there after I soon discovered that it was easier said than done. In the note business you need to understand the ins and out of the transaction and what is needed. After several note transactions I can say that this note sale was easy and the work put into it on my part was minimal.
First you need to understand that through out my career, in different industries, I have always been about process. Develop a process and team that can hand multiple transactions simultaneously and can adjust for the exceptions. With the proper process in place you can handle anything. The note industry is no different, all be it given the current economy and it has created challenges.
The team that we work with includes a familiar buyer a title agent to facilitate the transaction and a note guy to dot all the I’s and cross all the T’s.
What made this transaction so easy was the note seller. The seller in this case had all the documentation in a ready accessible place and their accounting of the note was impeccable. The documents requested for this transaction were:
- Deed of Trust
- Promissory Note
- Proof of Hazard Insurance
- Warranty Deed
- Title Policy
- Summary Statement
- Payment History
This note transaction had every chance to go South but it didn’t because when the Seller sold the property she did her homework and knew what to expect and was ready to get over the hurdles. Here were the obstacles we had to go over.
- Payor – The payor had previously had leased the property from the seller for 18 months prior to purchasing the property.
- Down Payment – There was no down payment but because the payor had leased the property for 18 months prior were able to get beyond the issue. That is buyer specific in how that was handled in this case we were good.
- Credit – the payor did not have good credit when they bought the home from the seller. The seller knew that so she had the payment come directly from the payor’s employer whom she worked for for 10 years.
All in all an easy deal we closed and all parties got what they wanted.