Satisfied Note ? - Posted by Paul

import · November 1, 2002, 6:24pm

Posted by Paul on November 02, 2002 at 12:00:44:

Thank you Lonnie for your knowledge and consideration.
Best wishes,
Paul

import · November 1, 2002, 6:24pm

Posted by Paul on November 01, 2002 at 19:24:08:

“After making 23 payments, this couple wanted to buy a new mobile home. They couldn’t buy the new home until my note was satisfied”.

This was taken from one of Lonnies articles.
What does he mean by-They couldn’t buy the new home until my note was satisfied? Is a note recorded somewhere for all creditors to see?
Thanks, Paul

import · November 1, 2002, 8:04pm

Re: Satisfied Note ? - Posted by Lonnie

Posted by Lonnie on November 01, 2002 at 21:04:15:

Hi Paul,

This couple wanted to buy a new mobile home, but still owed me 23 payments for the one I had sold them. If the new dealer had paid my note off, and taken theirs in trade, there wouldn?t have been enough equity to make the deal fly. Their only solution was to either find a buyer for their home and pay me off, or find a buyer that could, with my permission, take over the balance of their loan. They couldn?t do either, so they asked me to take the home back and relieve them of the note balance. Once they were relieved of my debt, they could then qualify for a loan to buy their new home.

The only place my notes are ?recorded? is on the title itself, which is on file with DMV.

Hope this helps

Lonnie

PS A footnote. Less than 2 years after buying that new home, they called wanting me to take that one off their hands. They couldn?t handle the payments and were upside down on the loan. I couldn?t help them that time, and never heard from them again. Most likely the bank got another ?non-performing asset?.

import · November 21, 2002, 2:42pm

Re: Satisfied Note ? - Posted by Kevin

Posted by Kevin on November 21, 2002 at 15:42:13:

Lonnie,
When you say “Once they were relieved of my debt, they could then qualify for a loan to buy their new home.”, what does that mean?

I completely understand them not being able to handle two loans, but if you are not reporting the secured interest anywhere other than on the title, there is no way for the bank to know these folks had another outstanding debt with you. Hence, your loan, if not being recorded with a credit agency never shows up on the bank’s radar screen as an outstanding debt (very scary…)

I guess my real question is how do you report your debtors to the credit agencies?

Thanks

PS - I have been doing “Lonnie” deals for a year now and I think I have found a system that is slightly different than yours. You touched on it slightly in your books, but we have come up with something that frees us of doing all the legwork associated with buying and selling Lonnie style. It’s exciting and after we try a few I will share the success (or horror story) with the group…