Posted by Tom Henderson on October 15, 2009 at 08:31:52:
In Reply to: Buying 1st Note - What does seller sign? posted by SteveCtx on October 08, 2009 at 13:11:08:
The first "form" is a contract to purchase the note. The endorsement of the note and assignment of the security instrument will be done at the closing table.
However, you are not near ready for this stage. There are other "intricacies" involved in purchasing a note, but from your standpoint, you want to make sure there are no other liens prior to yours, the note has not been purchased or hypothicated etc. When you close at the title company, demand a lender's policy. The lender's policy will make you aware of any time bombs. After you are comfortable the note is valid and legit, you will then take over the position of the note holder.
On the other hand, if the goal is to purchase the house, and the note holder has agreed to a discounted purchase price (short sale), why not just purchase the property with the note holder giving a $30K payoff. This can also be in the form of a contract. This way there is no need to purchase the note, you merely purchase the property via an "owner fiancing short sale".
Hope this helps.
Tom Henderson