I have a list of notes… - Posted by CJ
Posted by CJ on August 02, 2005 at 14:59:27:
Hi, I am collecting a list of notes…
Now I dont have the money to buy them, so I am thinking of flipping them. This is my first time doing this and i need help…
When I find a person that wants to buy a note. do i sent the Commitment Letter blank? or do I fill some of this before sending it?
this is the one that i have from the cash flow program,
please help…in their name goes my name right the seller and in your name goes the buyer, now do i fill my name or he does it. The county would me his or mine.
THIS COMMITMENT TO PURCHASE, is made _______________ by and between you, ( their name ), the
undersigned (Seller), and ( your name ), (Purchaser), and/or its successors and assigns, whose address is
This commitment is made in ( your county ), subject to and contingent upon ( your name ), and/or its
investor?s inspection and approval of the property and all documents including, but not limited to, credit,
appraisal and title work.
Seller agrees to sell and convey to Purchaser, and Purchaser agrees to buy, upon the terms and conditions set
herein, that certain ( Trust deed / Mortgage / Land Contract - the name of the instrument ) , wherein the
Payor owes a current principal balance of ( $balance amount ) as of this month, carrying interest on the
principal balance at the rate of ( interest rate % ) per annum, and requiring a monthly principal and interest
payment of ( payment amount ).
The agreed purchase price is the sum of ( $purchase price ) provided there are no underlying problems. If
the contract has to be renegotiated a verbal commitment from the Seller will be binding.
The subject property is located in ( county ) and is legally described as follows;
ADDITIONAL LEGAL DESCRIPTION TO BE PROVIDED AND VERIFIED BEFORE CLOSING
Seller warrants that:
- There are no prior liens or encumbrances on the property subject to the Instrument except as stated below:
SUBJECT TO: NO OTHER LIENS OR ENCUMBRANCES
- It has full power, authority and legal right to execute, deliver, and perform, its obligation under this letter;
- This Letter and the Instrument are legally valid and binding, and enforceable in accordance with their terms,
and there are no claims or defenses, personal or otherwise, or offsets whatsoever to the enforceability or validity
of the Instrument;
- There are no lawsuits or legal proceedings pending, or to the best of Seller?s knowledge, threaten regarding
encumbrances on, or the ownership, use or possession of, the property or the Instrument;
- No brokerage or other commission is due and unpaid in connection with the Instrument; and,
- Seller has, as of the date of this Letter, and will have as of the date of the closing, good, marketable title to
© 2001, America?s Note Network 27
During our processing period any additional payments made to Seller on the Instrument which cause a
reduction in the principal balance below $100 will also cause a minor adjustment in the purchase price at
closing. Seller agrees to return any payments received after the closing of this Instrument.
Seller understands that ( your name ), is not acting as an advisor for Seller in connection with this transaction,
nor as Seller?s agent, but rather is dealing with Seller at arms length, at all times. Seller acknowledges that it
has sought and received whatever independent legal, tax, accounting or other advice it desires concerning this
transaction. Further, Seller is not relying on ( your name ), in entering into this transaction, but is acting on its
own best judgment.
Seller agrees to execute all necessary documents to effect the assignment and conveyance to Purchaser of its
interest in the Instrument. Seller agrees to furnish any and all documents in its possession necessary to
consummate this transaction. If, after closing, it is discovered that errors, omissions, or loss of documents has
occurred, Seller agrees to cooperate with the Purchaser to correct any and all errors, omissions, or losses with
in ten (10) days of receipt of notice from Purchaser.
Upon our receipt of all the necessary closing documents related to this transaction, we should be able to close
within 21 to 30 days.
All normal closing cost will be the responsibility of the Purchaser with the exception of any additional, or
unexpected, legal cost necessary to clear or perfect title.
Should the Seller fail to close, after signing this agreement, Seller shall be obligated to reimburse Purchaser for
all out-of-pocket expenses incurred related to this transaction, up to the time of cancellation. These expenses
should normally be limited to title and/or appraisal fees, plus the processing fee of 10% of the remaining balance
of the of the note as of today?s date.
Purchaser hereby gives Seller a specific period of ten days to complete, and return, this Commitment Letter,
and agrees to keep this offer open for that period of time. If Seller is unable to complete, and return this
agreement within the allotted time , this agreement shall be canceled. Purchaser may extend the time period,
upon conditions it deems acceptable.
Your Name & Signature
Social Security Number Of Seller