Posted by Jon Richards on February 01, 2001 at 19:58:31:
Greg:
I think, especially between relatives and friends you should have a written contract.
In this case, the normal way to handle this is to create a partial purchase contract that spells out exactly what happens if the event of an early payoff or foreclosure.
I can send you an example of a partial purchase contract. Email me with your physical address
Jon Richards,
NoteWorthy Newsletter Publisher
email us for a sample issue at jon@noteworthyusa.com
Posted by Greg - TX on January 31, 2001 at 24:48:36:
I have a question about selling part of a note.
I recently found a very clean 3B 2B 1988 model singlewide setting on 1 acre. The owner is moving out of state and they are asking $14k cash for the home and land. The home needs no improvements. I?ve lined up a buyer who is looking for a home exactly like this. The buyer will pay $25,000 with $1,000 down financing $24,000 for 144 months @ 13% interest - monthly pmt $329.91.
I have a relative who wants to purchase part of the note. They want to buy the initial $14K and have me mail them a check each month for $192 which is $14K financed for 144 months @ 13%. I would then keep the remaining $137 from the buyers monthly payment and have no money out of pocket.
Is there an article that explains the Right way to do this? Should I have a promissory note between my relative and myself?