An option to by a note. - Posted by James Searle

Posted by Michael Morrongiello on January 21, 2001 at 21:19:07:

James:
Many note or land contract holders are guilty of not keeping the most meticulous records. IF a buyer comes along with a nice shiny pickup truck, has some cash to put down towards one of their homes, often the seller WILL agree to finance them.

We encounter this scenario all the time and the best approach I have found is to simply get from the contract holder the relevant documentation (land contracts, confirmation of the actual property addresese, etc.)and do some of the legwork yourself. If the property is local to you, go out and look at it, see what its condition, upkeep, and location are like? Also make sure he/she understands the importance of copying the next payment or installment coming due.

With a little luck we can still get credit information on these payors even without their SS# information and then effectively price the cash value we would pay for the contracts. Now you can go back to the contract seller and negotiate a sales price for the (4) four land contracts building a fee for yourself when they are sold.

Trying to approach the payors to refinance lets the “cat out of the bag” and make actually backfire against you as the payors attempt to cut their own deal with the contract payee. IT also is filled with uncertainty as each payor on the contract may not be in a position to refinance, nor want to, or simply not want to take that on with your timetable (read PROCRASTNATION)

If you need assistance in this area, please feel to contact me.

To your success,
Michael Morrongiello

An option to by a note. - Posted by James Searle

Posted by James Searle on January 19, 2001 at 23:12:30:

I have an individual who has four contract for deeds he wants to sell as a package. (he is moving out of state) The interesting thing is he has no information regarding the payors, no credit report, no verifiable payment history, no nothing. He doesn’t want to bother the payors for their ssn, he feels its to intrusive. I told him that he would get very little for these contracts with out any info.
Anyway, I thought about putting together an option to buy these notes and then approaching the payors and offering to refinance them onto a conventional or subprime financing, even offering them a little discount. (I am a mortgage broker so this is easy for me).
I could simultaneously close one or two, and buy out the rest. Any other ideas that you see available in this situation?
Does anybody have a mortgage/contract for deed &/or note “option agreement” or should i just adapt a real estate option?
I am also looking for a good web page that is a good source for mortgage/real estate forms, any suggestions?
Thank you for your advice.
Regards
James Searle