Nine Fatal Mistakes Note Sellers Make

Nine Fatal Mistakes Note Seller’s Make

1. Sellers fail to keep all information on the buyers in a safe place in case of fire or some catastrophe. Phone numbers, employment, social security numbers, original note, mortgage, insurance policy, etc.
2. Sellers fail to make sure real estate taxes are paid on time by the borrower, or better yet, sellers should pay the real estate taxes themselves.
3. Sellers fail to make sure that their title company or their attorney made them an amortization schedule so that they can keep up with all payments that are made to them.
4. Sellers usually let the buyer get into the habit of making late payments past the grace period.
5. Sellers usually don’t notify a buyer at least four to six months before a balloon payment is due, in order to give the buyer time to refinance the loan.
6. Sellers usually don’t make sure that the insurance policy on the property is issued for an amount that represents at least the full value of the note still owed them. Owners should make sure that they are listed as mortgagee, trustee, or the first contract holder on the policy. This way you will be entitled to the proceeds from any claim ahead of the borrower. You as owner should also get a notice of cancellation if the borrower fails to keep the policy current.
7. Sellers fail to make a habit of driving by the property on a regular basis to make sure the buyers are keeping the property in good condition. If the property is out of state, have someone you can trust drive by for you.
8. If a buyer gets three months behind on their payment, immediately start the foreclosure process. The biggest mistake made by sellers in this area is a) taking matters in their own hands; b) delaying the foreclosure process; and, c) not getting an experienced foreclosure attorney to help them.
9. Most sellers don’t realize a note is a depreciating asset. Each month, each year the value of the note becomes less and less due to inflation eating away at the value of your note.

If after reading these nine fatal mistakes that sellers make, and you have made all or any of these mistakes, and if being a mortgage holder is not what you bargained for, then we have the solution for you. Sell your note to Harris Note Investors. We have the expertise and experience to handle all of the above problems. We will convert your note to a lump sum of cash and then you can be free to live the good life, such as:

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