Note vs DOT - Posted by Lynn

Posted by Lynn on July 17, 2011 at 12:31:53:

Thanks for the suggestion, but it does not answer my question. Does anybody know which document takes precendence…the note or the DOT?

Note vs DOT - Posted by Lynn

Posted by Lynn on July 13, 2011 at 11:03:14:

I am considering purchasing a note in Texas that has a non recourse clause in the note. The DOT very specifically says there IS recourse. Which document would prevail in court?

Security Instrument Vs Debt Instrument - Posted by Michael Morrongiello

Posted by Michael Morrongiello on September 23, 2011 at 24:11:27:

Lynn;
A DOT - deed of trust or mortgage is not an instrument of indebteness. Its a Security instrument used to secure a promise. Typically that promise is the promise to repay a debt - a Promissory Note.

If the Note says that the debt is to be paid with recourse to the individual maker(s) and there is no other “exculpatory” language that precludes this then I would say that recourse to the maker(s) exists.

However that being said I would factor some increase RISK into the transaction because of the ambiguity that seems to exist between what the note states and what is stated in the DOT.

Best to you success;
Author of the home study courses available on this site; The Unity of Real Estate & “Paper” and Paper Into Cash - the definitive guide on how to create marketable Notes.
Michael Morrongiello
Sunvest
www.sunvestinc.com
Since 1983 - Creative People with Creative Solutions

Re: Note vs DOT - Posted by Lee

Posted by Lee on July 22, 2011 at 14:22:36:

You should consult with a Texas attorney that is skilled in this
matter.

Re: Note vs DOT - Posted by Ken

Posted by Ken on July 18, 2011 at 16:28:48:

Seems to me if you were suing it would be on the note so if the note says non recourse I think that would prevail.

Re: Note vs DOT - Posted by Loc

Posted by Loc on July 13, 2011 at 18:56:28:

The promissory note is a simple promise to pay, whereas
the DOT is what attaches collateral to the note.

Why not get the note seller to have the payor agree to
sign a new promissory note that has full recourse?