With all the gloom and doom in our country these days, how about having some fun and maybe learning a little at the same time. Let’s play a little Note Trivia:
I. Your note has an Alienation clause. This means:
A. Your buyer may not sell the property to an alien from another planet.
B. You sold your property to a foreigner.
C. Your buyer may not sell or transfer the property without your written permission.
II. Your note has a Balloon payment. This means:
A. After the last monthly payment is made, you and your buyer will have a party with lots of colorful balloons.
B. After the last payment is made, your note will be attached to a balloon and released into the wild blue yonder.
C. A payment is due you at the end of a partially amortized pay schedule.
III. You are selling your note. The note investor informs you he is ordering a BPO. A BPO is:
A. A Bacon Pizza with Onion.
B. A Bullet Proof Overcoat necessary for protection in the property neighborhood.
C. A Broker Price Opinion to evaluate the condition and current value of the property.
IV. You have a note with Interest Only payments. This means:
A. Your buyer can make payments only if he is interested in doing so.
B. Your buyer will never make a principal payment to you.
C. Your buyer will make interest only payments for a specified period, then pay the entire balance due.
V. You are selling your note and told that the Title Company found a “cloud” on your title. This means:
A. The sun never shines on the property.
B. The Title Policy will be difficult to read unless you have 20/20 vision.
C. Cloud is a condition revealed by a Title search that adversely affects the Title to the property.
VI. Your note has an Acceleration clause. This means:
A. Your buyer may exceed the speed limit when driving on the street where your property is located.
B. You may demand your buyer make payments faster than the note requires.
C. You can declare the entire outstanding balance due and payable in event of default.
VII. You are purchasing a property and told that Earnest Money is required. This means:
A. You work hard for your money.
B. You are sincere in your intent to purchase the property.
C. A deposit made by you to demonstrate good faith.
VIII. Your note has a provision called Consideration. This means:
A. You will always be considerate in dealing with your buyer.
B. Your buyer agrees to always be considerate when dealing with you.
C. A legal right or promise exchanged for the promise or property of another person.
IX. You are told your ownership to the property is Fee Simple. This means:
A. You will pay NO fees of any kind.
B. The transaction is arranged for “simple” people only – no intellectuals allowed.
C. You are entitled to the entire property with unconditional power to sell it.
X. Your note has a Severability clause. This means:
A. You may sever a limb if your buyer misses a payment.
B. The note becomes null and void if your husband/wife buyer sever their relationship.
C. If any clause of your note shall be determined to be void or unenforceable for any reason, such determination shall not affect the validity or enforceability of any other note clause.
XI. Your property is assigned a Parcel Number. This means:
A. UPS will deliver recorded documents to your home.
B. The County government now considers you a number – not a person.
C. A number given to a piece of property by the County for tax purposes.
XII. Your note has an Underlying Debt. This means:
A. The Mafia buried a body on the property.
B. You keep your documents under your bed.
C. An original loan that is still in existence on the property
How did you do?
Correct answer – C.
Call me if you want some pricing for your note.
