Posted by Ernest Tew on March 01, 2003 at 12:48:05:
Sometimes, it is beneficial to take two notes that are secured by the same property. For example, the first note might be payable over three years with all payments being applied to it. The second note might be paid over three years, starting three years from date of closing. In the event of a default during the first three years, you could sue in small claims court on that note. A default would be less likely after the first note has been paid off.
If you need to raise cash, you should be able to sell the first (short-term) note without giving much of a discount.
You can create the notes by getting a good form and making the appropriate changes. Both notes can be secured by the same property.
If you need some excellent forms, please send me an email.