Buying Mortgage Notes? Sometimes It’s The Little Things!

If you are buying mortgage notes from banks or private sellers then you know sometimes those small pesky details can turn into big trouble. Recently a reader shared one of his note buyer stories of a "good deal gone bad." He was kind enough to let me share his story in hopes of saving others from a similar situation. After you read his story please head over to What Private Note Buyers Can Learn from MERS for tips on safeguarding against this challenging situation. Buying Mortgage Notes … [Read more...]

Note Buyers Demand Original Promissory Note

In an effort to hang on to homes in foreclosure many owners are telling banks to, “Show Me the Note!” It looks like Wall Street lenders are learning something private note buyers have known for years… When buying and selling mortgages or trust deeds you need to get the original promissory note! Put it in a safe place where it won’t get lost and make sure it comes with endorsements and assignments that follow the chain of ownership. You know, something that proves you own what you say you … [Read more...]

Safekeeping the Original Promissory Note

The Promissory Note is an important legal document that should be kept in a safe place, and here is why! The note is a promise to pay or IOU from the buyer, spelling out the amount and terms of repayment. In legal jargon it is known as a negotiable instrument.  Similar to a check, the original must be presented to collect or prove ownership. If the seller desires to sell and assign the note payments to an investor, the investor will ask for the original note to be provided at closing. … [Read more...]

Increase Value with Payment Histories

Keeping an accurate record of the payments received on the promissory note shows how much the buyer still owes along with their payment habits.  Plus, note sellers can also improve the value of their note by providing a verifiable payment history to the investor! … [Read more...]