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When one is attempting to sell your note the process can be a tricky one. We are just about to close a note deal here at The Texas Note Company that I wanted to share some of the details with you. A note holder in North Texas up around Dallas called me and wanted to sell his note secured by three land lots. For the sake of argument we will call the note holder Chris. I told Chris that in order to sell his note and get a good  accurate quote I would him to fax me the following documents:

• Note Document
• Deed of Trust
• Warranty Deed
• Settlement Statement
• Payment History

Chris was able to provide all of the documents above except the payment history. I was able to provide Chris a good quote on his note which he accepted. We could close the deal if we could validate the payment history on the note. Here were the details of the note and the offer:

This is the amount that Chris was looking for and he wanted to proceed with the quote. I told Chris that all I would need to close the deal was pictures of the property and a bank statement to verify the payment history. This is where we ran into trouble. Chris’s business is a cash business he fixes and sells cars. The payor, a friend of Chris’s, on the note runs a wrecker service with several different trucks, also a cash business. Every month on the 1st the payor would pay Chris in cash, never missed a payment according to Chris. I said no problem Chris just get your bank statement and highlight the deposit each month for $498.69. Chris then proceeded to tell me that his cash payments on the note were deposited along with his receivables from his business, meaning there was no way to verify the payments of $498.69. This poses a big problem as most investor would not go near this note without verifying the payments.

Fortunately we were able to purchase the note because we are familiar with the area the note is in and we based our decision on the payor’s credit report. He had a good score, above 600, but also we were able to see the loan’s that the payor had on his trucks used to operate his wrecking business. Two loans not one missed payment and each payment was made on time. This was enough for us to go ahead with the deal.

 Chris learned a valuable lesson in the world of real estate notes, keep his note transactions separate from all other matters and keep verifiable detailed records of the transactions.

A secured property loan uses the equity you have in your property and gives you cash that you need to pay off debt, make home improvements, make a large purchase or finance an education. Secured property loans determine the value of the property you own less any amount due for a mortgage and gives cash for this amount to borrowers.

Because mortgage rates and home loan rates are at an all time low in the United Kingdom, many people are discovering that it is financially prudent to borrow against their property equity. The money one receives from a secured property loan can be used for a vast array of purposes.

Many people own land and seek to build a home on the land. In many cases, the individuals have a mortgage on the land as well. By seeking a secured property loan, these individuals can sometimes get the cash they need to build a home on their property without interfering with the current mortgage.

Other people use a secured property loan to make home improvements on their existing home. Even if they already have a mortgage on their home, they can usually borrow against the equity. Home improvements can be very costly and most people do not have the money needed to make these improvements. For this reason, many people choose to borrow the cash needed for home improvements. By borrowing against their property in a secured property loan, they can get a much lower interest rate than if they decide to finance the improvements through a finance company.

Another reason why people borrow is to obtain cash to consolidate debt or pay off balances on high interest yielding bank cards. Many of the bank card interest rates are nearly three times more than one would pay for a secured property loan. It makes good financial sense to pay off high interest loans with one low interest loan.

In addition to making home improvements and paying off debt, others get secured property loans to finance an education or make a large purchase, such as an automobile. Automobile loans are sometimes more difficult to get than a secured property loan and usually have a higher rate. For this reason, many people in the United Kingdom are opting to pay for an auto with the cash they receive from a secured property loan. In addition, those who pay cash for an auto are usually afforded a better deal than those who finance the automobile, saving the individual even more money.

To get a secured property loan, you will have to get a basic valuation on the property to determine what it is worth. Your lender will determine the amount of equity you have in the property by subtracting any amount due on a current mortgage. The lender will then be able to tell you how much you will be able to borrow.