Funding for: Divorce Liens, Bankruptcy, Probate, Real
Estate Notes, and AnnuitiesWe are direct note investors for your
owner Financed Mortgage note. Whether it is a land contract or owner
financed first mortgage note, we require that your email us your
settlement statement and seller financed note in PDF or Word
format.Installment sales agreements/ land contract (aka "contract for
deed/sale") is a contract between a seller and buyer of real property, in
which the seller provides seller-financing to sell the property for an
agreed-upon purchase price, and the buyer repays the seller-financed loan
(Note) in mortgage payments. Under a contract for sale, the seller
retains the Legal Title to the property, while permitting the Buyer to
take possession of it for most purposes, other than legal ownership. The
Sale Price is typically paid in periodic installments, often with a
Balloon Payment at the end, in order to make the timelength of payments
shorter than a corresponding fully amortized loan, without a final
balloon payment. When the Full Purchase Price has been paid, including
any interest, the Seller is then obligated to convey Legal Title to the
property to the Buyer. An initial Cash Down Payment from the Buyer to the
Seller is, usually, also required by a land contract. The legal status of
these type of contracts varies from state to state. However, the Buyer in
these types of contracts will have a copy of the land contract, or
memorandum of sale, recorded in the County Recorder's Office where the
property is located in order to protect his/her financial and future
ownership interest in the property, until the Legal Title is conveyed.
Since the contract specifies the sale of a specific item of real estate
between a Seller and Buyer, a contract for sale can be considered a
special type of real estate contract. In the usual, conventional real
estate contract, the Seller does not specify a loan nor include
provisions for a loan from a "third party" lender (i.e., a financial
institution). Such (loan) provision is placed into a conventional
contract as a "contingency" by the Buyer. When Third Party Financial
Lenders are involved...FHA / FANNIE MAE / FREDDIE MAC...typically a Lien
called a Mortgage is placed on the property so that the value of the
property is used as collateral until the bank loan is paid in full. .
After the Purchase & Close, we take over the Land Contract.Your
Options...From Weakest -to- Strongest: Lease Lease, with Option to Buy
Contract for Sale (or Contract for Deed) Straight Sale, with Seller
Financing Straight Sale, via FHA .We don't buy newly created or
relatively new Seller-Financed Notes unless there has been 12 months of
prior ownership by the property seller PRIOR to the current re-sale. I
will require that: (1) Buyer must obtain a Grant or Warranty Deed to the
home; (2) Buyer has, indeed, moved into the house. The purchase of the
home by the Buyer must have gone through an escrow/title insurance
company. And the Note Seller must obtain a Title Insurance Policy on the
Note; which will be Endorsed to us via a 104.1 Endorsement. Here is what
I expect from the Note Seller on NEW NOTES: 1) Purchase & Sale
Agreement, with Seller Financing Addendum, between Property Seller and
the Buyer of the home. 2) 1003 Residential Loan Application, completely
filled out by the Buyer. 3) Buyer's cash down payment must be ten (10%)
percent. 4) Buyer's Credit Score must be 625, or higher. 5) Property
Appraisal of the home must support the Sales Price. 6) Credit Report/File
on the Buyer. The Promissory Note should be Fully Amortized over 30-
years; with an Interest Rate anywhere between 6% and 10%; and a Balloon
Due Date of five (5) years from the date of closing. Monthly Payments to
include P & I. The Mortgage Instrument securing the Note is recorded
with the County Recorder's Office, prior to our Note aquisition. [The
Note Holder must have possession of the Note; secured by a recorded
Mortgage Instrument; and Title Insurance on the Note] The Discounted
Purchase Price of any Note will be determined by the Buyer's Credit
Score; Buyer's Cash Down Payment; Property Location; Property Type and
Appraisal. States: Texas, Georgia, North Carolina, South Carolina,
Oregon, Tennessee, Virginia, Washington, Idaho, Kansas, Massachusetts,
Missouri, Florida, New York, New Hampshire, Rhode Island, Maine,
Kentucky, Alabama, Oklahoma, Nebraska, Colorado, New Mexico. Avoid These
States: California, Arizona, Nevada, Michigan, Vermont, New Jersey