Question On Millions of Mortgages in Minutes - Posted by Jim Davis

Posted by John Behle on December 08, 1999 at 15:48:05:

The documents are very simple. Since you are going to have real estate as collateral you just create a standard Trust Deed and Trust Deed Note or Mortgage (if that is what is used in your state).

You can either write the loan that way to begin with - or cancel the “installment contract” from the water company or whoever - and create a Trust Deed and Note

Of course, it is best to write it right to begin with. Never buy a bad or less than desirable note hoping to change it, but it only upon condition of changing it. Never cancel the first note until the second is signed.

Be aware of the payor’s circumstances. Cancelling an existing note and writing another will make it a new note in the eyes of the court and a bankruptcy within the next 3-4 months (one year if it is a relative) can result in the transaction being set aside. You then become an unsecured creditor instead of a safely secured mortgage owner.

As an additional sales point on collateral conversion situations, we sometimes make much more attractive terms available and point out that it may be tax deductible if secured by their home.

Question On Millions of Mortgages in Minutes - Posted by Jim Davis

Posted by Jim Davis on December 08, 1999 at 01:42:51:

John, in your course on finding notes you mentioned a method called “Collateral Conversions” by which the goods and services that were purchased are collateralized by something other than what is purchased(like a home).

My question is how and what are the doc’s that are needed besides the standard retail installment contract?
I have no less than 5 water treatment companys chomping at the bit to put something like this in effect.

Thanks in Advance

future advance clause - Posted by GARY W. STALLINGS

Posted by GARY W. STALLINGS on February 05, 2000 at 13:12:38:

please define the term future advance clasue as it relates to a bank mortagae on a commercial building