.
248 650 3535

Selling a Promissory Note

To make a land contract marketable, the person buying the note will often require that it be converted to a Mortgage or Promissory note. It is much easier selling a promissory note as opposed to a land contract. In converting the land contract, errors and other imperfections can be addressed and corrected. This makes the note easier to market.

I see a lot of land contracts riddled with errors that without correction, the note would not be marketable. A recent case in point was a land contract that was signed, but not dated. It indicated that the first payment was due 30 days after the closing, but did not have a closing date on the contract either. The person selling the contract indicated that the payment were based on a 30 year amortization, but the payment in the agreement reflected a 20 year amortization. The record of payments for the first two years were rounded up and reflected just under a five dollar overpayment each month, but the extra few dollars were not taken off the principle.

In short, to correct these errors, it is going to take the cooperation of the payer. It is to the benefit of all parties to have these errors corrected, but sometimes the payer can be difficult.

I would encourage anyone looking to sell his or her home on a land contract, to contact us and get some free advice as to the correct language and structure. It is highly advisable to have an attorney draw up the agreement. However, attorneys don’t always have the most current information as to the latest legislation and the ramifications on this kind of deal unless they specialize in real estate. The two pieces of legislation that come to mind as of this writing is the Dodd Frank bill and the SAFE Act. If you are not familiar with them, you need to “Google” them and make sure your attorney is familiar with the ramifications of these two bills on a land contract or mortgage note.

ow to sell a promissory note is better asked when the note is first drawn-up, so that when you say in the future, “I want to sell my promissory note”, you won’t have problems that will hinder the selling of the note and adversely effect the market value of the note.

It is better to pay attention to what a land contract buyer wants to see, when the note is first drawn-up, so that when you want to sell a land contract in the future, you won’t have problems that will hinder the selling of the note and adversely affect the market value of the note.

One other big item that is often put into a land contract that can adversely effect the value of the note greatly, is a balloon payment provision. These are often put in so that the seller (the one holding the contract) can get full payment in cash in a couple of years after the sale. These provisions can often come back and bite you if the person buying the home is not able to get refinanced.

 

Useful Blog Post For Your Help About Selling A Promissory Note

 

I want To Sell My Promissory Note, Any Idea How To Do It?

So, you sold your property a year back and the buyer pays you in installments with certain interest. On the basis of promissory note, you keep on receiving the payment on time, but now you are interested in buying a new property for which you wish that the buyer could pay you the rest lump sum. Unfortunately, this could not happen! You found out a middle way to get out of the problem, i.e. selling the promissory notes. Read More

Find Out When & How To Sell A Promissory Note

Promissory note as you know already is making a promise of repaying a sum of amount in installments relating a property. Clearly this business requires you to be very careful. And more than knowing how to sell a promissory note, what is important to be aware about is when to sell it. The right time, the right investor, and the right skills all play an important role in successfully selling a promissory note. Read More

Tips for Selling a Promissory Note

To sell a promissory note is better first draw it and make the documents ready. Following this the procedure is very simple as there will be no problems that will hinder the selling of the note and adversely affect the market value of the note. In order to make a land contract marketable, the person who is buying the note is often required to convert it into a Mortgage or Promissory note.  Read More

How To Sell A Promissory Note On Property

It is the ‘promise to pay’ based on which a promissory note is sold. It comprises of the payor and payee. There are also two kinds of this type of note. One is unsecured and the other is secured. The unsecured form does not have any attachments and it is given based on one’s ability to repay. The secured form is also made based on the ability to repay. But, the secured form of promissory note is secured by a thing of some value such as a house or car. So, how to sell a promissory note on property depends on which form it is being sold out. Read More

Selling A Promissory Note is the Trend

A promissory note is an assurance given to a lender by the borrower to make repayments in time. So, Selling a Promissory Note is a good idea as lenders have the advantage of guaranteed return of money. The asset or property used as collateral in the note serves as a guarantee to lenders for return of their money. So, under the terms of the promissory note, if the borrower fails to return the stipulated payment, then the asset pledged gets handed over to the lender. Read More

Promissory Note Buyer Will Offer You Cash For Your Monthly Payments

Offering your notes to a promissory note purchaser permits you to raise a substantial whole of cash without taking out a bank advance. It takes as meagre as two weeks to offer your obligation instrument, though a bank can take over a month. There are a few different preferences – you lose the danger of swelling, save your cash’s quality, and wipe out the bother of regularly scheduled instalments.
Read More

Points to Remember On Promissory Notes

Taking loan from a bank is easy nowadays, you need to so your monthly income and based on that you can get your loan passed in 3 or 4 working days. However, apart from getting load from bank, where bank will enjoy the interest paid by us in form of profit, an individual or companies, can also opt for getting finance from any other source other than a bank. In such situation, when an individual or companies, get the loan from other sources, a legal agreement is setup between the payee and payer of that loan amount.
Read More