How to buy Real Estate Notes – I bought a non-performing note – Now what?
January 2, 2009 by notebuyingprofits.com
Filed under Note Buying 101, Real-Life Case Studies, Videos
On How to buy Real Estate Notes:
Here’s a little primer on what to expect once
you’ve bought your first nonperforming note.
Take a look at the video below and you’ll get a brief
overview of the documents that can be included when
you buy a note. And even if you don’t get everything
that you’d expect to see from the bank, I’ll share a
story with you about the missing Florida note we
bought and what happened with that deal.
Why does this matter to you when you are buying Real Estate Notes?
Because the better prepared you are for what to
expect when you buy a note, the better a negotiator
you’ll be when you’re first talking to the bank. And
the better you are at negotiating, the more
professional you’ll come across, and the better deal
you’ll get.
Each and every time.
So go out there and hit 2009 running – and take a
look at the video below to see what I expect you’ll be
doing a lot of this coming year.
To your note buying success in 2009!
What do you do without the note? I live in Florida (a judicial foreclosure state). Judges are getting real picky about letting lienholders foreclose without an original note, and defendant’s attorney’s are getting very aggressive about demanding both an original note and a complete accounting of the application of funds. Not having either can mean you have a worthless asset because you have no means of enforcing payment.
Bob, if you’re just starting out (and even if you’re an experienced investor) you really don’t want to buy any note unless you can get the original note, and have that included in your purchase and sale agreement with the bank. You’re absolutely right about judges being increasingly sensitive to lenders proving title to the mortgage. If the seller won’t warrant that they have (and will provide you with) the original note and an allonge (template included in the document toolkit we provide as part of the A-Z homestudy course on the homepage at NoteBuyingProfits.com), then don’t buy the note.