THE ORIGINAL PROMISSORY NOTE DOCUMENT NEEDS TO BE KEPT IN A SAFE PLACE.

When the decision has been made to use Owner Financing to facilitate the sale of real estate documents are created. The importance of these documents to the seller(Note Holder) can be thousands of dollars. All to often, after several payments have been made on the note, have note holders decided to sell their note and not have all the note documents readily accessible. I am going to indent the next sentence because it is the most important of this article.

THE ORIGINAL PROMISSORY NOTE DOCUMENT NEEDS TO BE KEPT IN A SAFE PLACE.

Think I will say it again to stress the importance.

THE ORIGINAL PROMISSORY NOTE DOCUMENT NEEDS TO BE KEPT IN A SAFE PLACE.

When a note holder decides to sell their note and cash out of their monthly payments the PROMISSORY NOTE DOCUMENT is what is being SOLD. If you don’t have the original note then what do you have to sell? That is like you go to buy a car with cash in hand and the seller of the car gives you a picture and tells you the car is in another state. Often is the case that a home seller will us areal estate professional like an attorney or title agent to prepare all the necessary documentation and to record it with the county, a very good practice. The issue comes up several months later when the note holder goes to sell his or her note and assumes the real estate professional has all the needed documentation. The real estate professional will have copies of the documents on hand and that is helpful but rarely will they have the ORIGINAL PROMISSORY NOTE DOCUMENT. I will say it again.

THE ORIGINAL PROMISSORY NOTE DOCUMENT NEEDS TO BE KEPT IN A SAFE PLACE.

I have repeated myself three times in this article about the ORIGINAL PROMISSORY NOTE DOCUMENT but all of the documents that went along with the original real estate transaction are important. When a note holder has made the decision to sell their note and received an agreeable offer, 90% of the time that goes into the note transaction is chasing the note documents. Here at The Texas Note Company we have note sales take as long a 90 days and note deals completed in as short as 5 days. In each case the length of time came down to the documentation.

Every note sale is different in some respect, even as far as the documentation is concerned. Here is an extensive list of documents in our most recent note purchase.

1. Original Promissory Note
2. Deed of Trust
3. Warranty Deed
4. Original Closing Statement / HUD-1
5. Purchase Agreement between buyer and seller
6. Texas Residential Policy of Title Insurance
7. Purchaser’s Closing Statement
8. Seller’s Closing Statement
9. Payment History Affidavit by seller
10. Dwelling declarations
11. Evidence of Hazard insurance with seller designate as mortgagee
12. Payor’s Social Security Check
13. Property Tax Status

Here at The Texas Note Company we are real estate professionals that specialized in owner financing strategies and techniques. If you are a real estate note holder and interested in selling your note or would like to determine the value of your note on the secondary market visit us at http://texasnoteco.com