Steve:
It sounds like you have a certain percentage or undivided interest percentage of ownership of an existing promissory Note with some other family members. Surely you can see if these other family members that Also have a percentage of ownership interst in the Note would be willing to sell it to you. As for what to offer, you need to determine what owning their interest’s and the WHOLE Note is worth to you?
Your local bank very well may loan you the funds to purchase this Note and allow you to “hypothecate” it with them (just a fancy word for pledge) as collateral for making the loan to you.
Inherited - Promissory Note w/ Siblings - Posted by Steve Brixey
Posted by Steve Brixey on February 24, 2002 at 16:28:53:
BRAND NEWBIE HERE, I JUST FOUND YOUR WEBSITE.
We’ve inherited a $43.5k note (Face Value), dated August 1994, bearing 9% per anum. $55.7k is currently owed by the grantors. I am thinking about offering to buy-out my siblings to take control of the note. I believe the grantors will end up being being “long term renters” and will never get the principle paid down or off. Eventually we’ll get the property back. The grantors have been consistant with $600.00 a month interest payments. Not much against the Principle though.
1). How much of a discount should I consider in making my siblings an offer??
2). Would my bank lend me money ( Good Credit)against the promissory note to buy-out my siblings??
3). If so what time frames are usually made for this type of loan?? Would this be considered a business loan?? or a Mortage Loan???