Posted by Jon Richards on February 07, 2001 at 20:14:01:
Mr. or Ms. Johnston:
This could be lucrative. The best thing might be to redraw up the documents to create two first notes (or seconds, etc.) Then you buy one of them. both Firsts would have the same priority in the event of a foreclosure. Have it done by a title company. Can’t be too expensive.
But the partners owning the note must agree. Perhaps a small bribe would convice the non selling owner to split the note.
The two partners paying, should have no bearing except when you do credit checks, and you due diligence. If the note is current, the property appraises for enough, and the partners have good credit, it should work.
Publisher, NoteWorthy Newsletter.
Split note - Posted by GJ
Posted by GJ on February 06, 2001 at 22:19:46:
What do I need to watch for in the following scenerio:
- Underlying (single) mortgage with 2 partners liable.
- Sold w/ owner carry with 2 notes - 1 to each of the partners.
- One of the partners wants to sell his note.
Any advice on gotchas?
2 notes - Posted by Michael Morrongiello
Posted by Michael Morrongiello on February 07, 2001 at 21:28:55:
If only one of the note holders wishes to sell their note, and the other note holder wishes to hold on to theirs that is feasible. You must make sure the notes have equal rights as far as their lien priority is concerned and have equal rights to foreclose. (Sometimes called “equal dignity” rights)
If you purchase just the parties interest, then make sure to have that note endorsed over to you and to collect and have poesession of that one individual note.
It would be wise to have the note holder that does NOT wish to sell, acknowlege that you have acquired the other note and to agree to notifiy you in the event of any problems associated with his note.
To your success,