After You Buy Your Real Estate Note....
Today, I want to focus again on real estate notes. Most folks are familiar with real estate because they either live in a home they own or a home they rent. The ground below us and the place we live in is real estate. Real estate notes are another matter. While many folks have seen shows on HGTV where someone buys a home or builds a home, fewer folks understand about real estate notes.
As I shared last time, a note is a promise to buy for a period of time into the future something you get to enjoy right now whether that item of enjoyment is a home… a car… or a piece of jewelry. Obviously, a real estate note is a promise to pay into the future for real estate that you get to enjoy right now. Last time, I share the steps on buying the note. Once you have purchased the note after your due diligence and you have received all the loan documents, there is one last step that is very important. That last step is recording the documents showing you as the rightful owner of the real estate note. Details about this time are a little confusing depending on what security instrument is on the real estate property. That is why I am focusing this blog post on that final step. The final step is as follows:
a. If the real estate you purchase is secured by a Note and mortgage/ deed of trust- record the assignment of mortgage
b. If the real estate you purchased is secured by a recorded land contract- record the special warranty deed… and the assignment of mortgage
c. If the real estate you purchased is secured by an unrecorded land contract- record the special warranty deed
While many people do not like paperwork, it is important. Those recorded documents tell the public and the world that you are the rightful owner of that real estate note so make sure you do not forget this IMPORTANT LAST STEP! Best wishes to you in all your real estate pursuits.- Randy L. Wall