Posted by Jeff Bliven on February 09, 2001 at 10:56:08:
Notes aren’t recorded… don’t need to be! And quite frankly you don’t want them to be!! Basically a privacy issue!
Recording fees aren’t that much… i guess if you wanted to protect yourself, you could record a memorandum of the note, that simply acknowledges that you made a change to the original note at such & such a time!?
I wouldn’t!!
Questions from a beginner - Posted by Lu
Posted by Lu on February 08, 2001 at 17:41:44:
Haven’t gone through the Sheets course fully yet so I have a couple of questions before I continue.
Is there a difference between asking the seller to extend me a loan in the form of a mortgage and obtaining a second mortgage from the seller? And maybe an obvious question, but when I obtain a second mortgage from the seller I pay him directly, right? Or is a bank involved in this?
Re: Questions from a beginner - Posted by Brent_IL
Posted by Brent_IL on February 08, 2001 at 23:59:22:
No difference. Second means the mortgage positioned after the first, but is used genericly to refer to any junior mortgage. Money is paid to seller by you.
Re: Questions from a beginner - Posted by Jeff Bliven
Posted by Jeff Bliven on February 08, 2001 at 23:38:46:
>Haven’t gone through the Sheets course fully yet so
>I have a couple of questions before I continue.
These questions are answered in his course work… I believe!
>Is there a difference between asking the seller
>to extend me a loan in the form of a mortgage and >obtaining a second mortgage from the seller?
Your question is a little vague! When you say “extend”, are you referring to a time extension of an existing loan, or are you referring to the initial issuance of a NEW Loan??
>And maybe an obvious question, but when I obtain
>a second mortgage from the seller I pay him
>directly, right?
Absolutely!! Or else he will get quite upset! As a matter of fact, I would venture a guess that FORECLOSURE would become an extreme possibility!
>Or is a bank involved in this?
The seller in essence is “THE BANK” if he makes the loan to you!
Good Luck!
Jeff Bliven
Traderguy@bigfoot.com
Re: Questions from a beginner - Posted by Lu
Posted by Lu on February 09, 2001 at 19:30:33:
Thanks!!
Re: Questions from a beginner - Posted by Lu
Posted by Lu on February 09, 2001 at 08:07:45:
Thanks for your help. I am going through the information again in the course. I was getting a little overwhelmed with all there is to learn. Also, I was referring to a time extention of an existing loan with my first question, but I think I figured it out.
Re: Questions from a beginner - Posted by Jeff Bliven
Posted by Jeff Bliven on February 09, 2001 at 09:46:05:
On 9 Feb 2001 14:07:45 -0000, you wrote:
>Thanks for your help. I am going through the information again in
>the course. I was getting a little overwhelmed with all there is to
>learn. Also, I was referring to a time extention of an existing loan
>with my first question, but I think I figured it out.
Lu,
If i remember the original post then, let me try this…
Bear in mind that a mortgage is ONLY the security instrument, like a trust deed… it is the “Proof” that there is a lien against the property! The NOTE that the Mortgage references is what is important. Hence, if agreed by all parties, the NOTE can be shortened, lengthened, changed in any way, as long as it is properly written, signed & executed! So, basically nothing needs to be added, changed or deleted from the “Public Records”!
EG. Many years ago, my in-laws had a note on one of my properties for $20,000, proper Trust Deed was recorded, to make it deductible and all that. However years ago, when interest rates dropped and stayed down, I told them I didn’t mind giving them a premium above market (because they had it in a CD anyway, so it was really good for them), but it was really a premium by then… and they knew it! So, I said… we can adjust the rate, or I could pay it off… it was there choice! We made the rate more of an adjustable, and lengthened the term. And this was ALL done verbally. We didn’t need to change anything in writing, or on the Public Records. But, I could have written up a NEW note!
Hope that helps
Re: Questions from a beginner - Posted by Lu
Posted by Lu on February 09, 2001 at 10:45:55:
Jeff-Thanks, I am started to get it now. You mentioned that it didn’t need to be changed on the Public Records, is there a disadvantage to having it on public record? (maybe fees?) Lu