One of the most frustrating experiences for note buyers – and note sellers – can be document gathering.
Once you decide to sell your note, I will ask you to provide copies of documents associated with your transaction. The frustration comes when you are not sure where all your documents are, and perhaps you don’t even have the documents you are supposed to have.
So, if you sell a property and carry back the note, you need to have a file in your home or office dedicated to the transaction. Here is what you will have to provide me when you decide to sell:
- Copy of the Signed Promissory Note
- Copy of the Final Signed Closing Statement
- Copy of the Lenders Title Policy showing you as the insured in the amount of your note
- Proof of Current Insurance on the property you sold, with you listed as the Payee
- Copy of the Recorded Deed of Trust that was mailed to you a few months after the transaction closed
- Proof that you have received the monthly payments – bank receipt or bank statement
Ronald Reagan famously said “Trust but verify.” Note buyers trust what you tell us but you have to verify it with documentation. And, when we close, you will have to provide the Original Signed Promissory Note and Original Recorded Deed of Trust.
It’s a simple process. Make sure you have all your documents readily accessible.