| THE ORIGINAL PROMISSORY NOTE DOCUMENT IS | | | | DOCUMENT, but all of the documents that went |
| THE MOST IMPORTANT AND NEEDS TO BE KEPT | | | | along with the original real estate sale transaction are |
| IN A SAFE PLACE. | | | | important. When a note holder has made the decision |
| When the decision has been made to use Owner | | | | to sell their note and received an agreeable offer, |
| Financing to facilitate the sale of real estate, legal | | | | 90% of the time that goes into the note transaction |
| documents are created. The importance of these | | | | is chasing the note documents. Here at The Texas |
| documents to the seller(Note Holder) can be | | | | Note Company we have experienced note sales take |
| thousands of dollars. All to often I have witnessed | | | | as long a 90 days as well as note sales that are |
| note holders decided to sell their note, after several | | | | completed in as short as 5 days. In each case the |
| payments, and not have all the note documents | | | | length of time goes down to the practice of record |
| readily accessible. Healthy Record Keeping practices | | | | keeping. In the month of March the Texas Note |
| can mean thousands of dollars to the note holder. If | | | | Company worked two transactions where the Note |
| record keeping is note your specialty, AT LEAST put | | | | Holder(person receiving the payments) could not |
| the PROMISSORY NOTE DOCUMENT somewhere | | | | locate the Promissory Note. In one instance two |
| you can find it and easily retrieve it. I am going to | | | | sisters became owner of a note through a will. In |
| indent the next sentence because it is the most | | | | another instance, the note holder had the Promissory |
| important of this article. | | | | Note Document in a storage facility in another state |
| THE ORIGINAL PROMISSORY NOTE DOCUMENT IS | | | | with no real means to retrieve it other than to drive |
| THE MOST IMPORTANT AND NEEDS TO BE KEPT | | | | half way accross the United States. When the |
| IN A SAFE PLACE. | | | | document process slows up a real estate note sale it |
| Think I will say it again to stress the importance. | | | | can become very frustrating and can add weeks to |
| THE ORIGINAL PROMISSORY NOTE DOCUMENT IS | | | | the length of time a note holder will receive their |
| THE MOST IMPORTANT AND NEEDS TO BE KEPT | | | | money. Sound record Keeping Practices is the key. |
| IN A SAFE PLACE. | | | | Every note sale is different in some respect, even as |
| When a note holder decides to sell their note and | | | | far as the documentation is concerned. Here is an |
| cash out of their monthly payments the | | | | extensive list of documents in our most recent note |
| PROMISSORY NOTE DOCUMENT is what is being | | | | purchase. |
| SOLD. If you don't have the original note then what | | | | 1) Original Promissory Note |
| do you have to sell? That is like you go to buy a car | | | | 2) Deed of Trust |
| with cash in hand and the seller of the car gives you | | | | 3) Warranty Deed |
| a picture and tells you the car is in another state. | | | | 4) Original Closing Statement / HUD-1 |
| Often is the case that a home seller will us a real | | | | 5) Purchase Agreement between buyer and seller |
| estate professional, like an attorney or title agent, to | | | | 6) Texas Residential Policy of Title Insurance |
| prepare all the necessary documentation and to | | | | 7) Purchaser's Closing Statement |
| record it with the county, a very good practice. The | | | | 8) Seller's Closing Statement |
| issue comes up several months later when the note | | | | 9) Payment History Affidavit by seller |
| holder decides to sell his or her note and assumes | | | | 10) Dwelling declarations |
| the real estate professional has all the needed | | | | 11) Evidence of Hazard insurance with seller designate |
| documentation. The real estate professional will have | | | | as mortgagee |
| copies of the documents on hand and that is helpful | | | | 12) Payor's Social Security Check |
| but rarely will they have the ORIGINAL | | | | 13) Property Tax Status |
| PROMISSORY NOTE DOCUMENT. I will say it again. | | | | Here at The Texas Note Company we are real |
| THE ORIGINAL PROMISSORY NOTE DOCUMENT IS | | | | estate professionals that specialized in owner |
| THE MOST IMPORTANT AND NEEDS TO BE KEPT | | | | financing strategies and techniques. If you are a real |
| IN A SAFE PLACE. | | | | estate note holder and interested in selling your note |
| I have repeated myself three times in this article | | | | or would like to determine the value of your note on |
| about the ORIGINAL PROMISSORY NOTE | | | | the secondary market visit us at TexasNoteCo. |