Buying A Note, Do You Use A Standard Contract?
I have found a non performing note, the first mortgage on a property, that the note holder and I have agreed on a purchase price. Do you use a standard real estate contract to purchase to buy the note? Or, do you just type up a bill of sale? Thank you for your help.
This is personal property, not real property. Certainly not a real estate contract. I would think a bill of sale would be sufficient. But I have never bought a note- just an interest in a property holding LLC, which I think would be similar as it is also personal property.
Chris
[ Edited by ypochris on Date 02/28/2008 ]
Thanks for the comments and suggestions. I am meeting with my attorney tomorrow morning to go over this deal. This is a legal note. I had my attorney do the title check on it and it is clear. I was hoping to purchase the note without the expense of using an attorney and then just use him for the foreclosure. However, since this is an area I am not familiar with I realized I needed the experience of a lawyer for it. Hopefully, we will be able to purchase the note, foreclose, make the repairs and sell for a decent profit.
Bargain King, I believe I have an agreement to purchase at a good price. It is less than 25% of the orginal note value. I realize a lot of different things can go wrong whenever you get lawyers and judges involved. I will find out more tomorrow when I meet with the foreclosure attorney that is also handling the purchase.
OK. Good Luck!
[addsig]