Posted by Randy on September 18, 2003 at 07:32:13:
A ?note? is a private loan or mortgage. If I loan you $10k for some reason, to buy property, pay off bills or most any valid reason I could have you sign a note, record a security interest (Lien) against property you own or are buying. It is the same as a mortgage from a bank but between two private parties.
notes - Posted by avery hodge
Posted by avery hodge on September 18, 2003 at 06:38:56:
Can someone tell me what a note is in REI ?
Avery
Re: notes - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 18, 2003 at 11:10:09:
Avery Hodge-------------------
Randy is pretty close on this. A “note” is a promissory note. A statement by somebody that they owe money to some person or institution. It has the terms of the loan: length of time to be paid off completely, the amounts and timing of periodic payment, the interest rate, any penalties for late payments, penalties for not paying off at the agree time, etc.
Then, as Randy notes, there is some security instrument which links the requirement to repay to a property or several properties. The security instrument–usually a mortgage or deed of trust, although there are others–states that if there is default in the payments on the note, then the property can be auctioned off at foreclosure. This tends to make the borrower pay the loan so as not to lose the property in foreclosure.
Good InvestingRon Starr***