Promissary Note On Sub2 Deals.
when i buy a house subject2, and i work something out with the seller where they get a small amount of money. now since i dont want to give this to them in cash, i have been told to use a promissary note. my question is will i not be able to sell the house untill the promisary note is payed off? does this put a cloud on the title? or can i give them their money at closing when i sell the house. any help would be great thanks.
I haven't done this yet myself (hope to soon, though). But unless the promissory note is secured by a mortgage or deed of trust as a lien against the property, it will not show up in the chain of title and will not affect your sale of the house. If it is secured, I presume that your closing attorney/title company will see the lien and make sure the note gets paid out of the proceeds at closing.
sounds good to me jeff. thanks, you are a great asset to this site