Re: Note #2 - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on July 08, 2002 at 21:12:59:
GL(ON) gave your some good advice. Mechanically, what happens is as follows.
When it comes time for the new first loan to go on the property, the title company will send a “demand letter” to your parents, asking them what amount of money they “demand” to pay off their lien on your property. Also, that they sign some papers allowing the title company or the trustee of the second loan to put a document into the county records showing that the obligation is no longer against the property. Then, after the new loan is on, they will get a check for what they are owed.
Incidently, what are your parents going to do with all the cash? Do they have a good, high-paying investment in which to place it? If not, might it be possible for you to help them out by finding some investment at a very good price and you and they share in it? I once sold my father a 1/2 interest in a note and deed of trust which I had bought at a discount. He was getting about 4% from the bank and got 14% from his half interest in the note. These days the banks don’t even pay 4%.
Good InvestingRon Starr*