Posted by Jon Richards on February 07, 2001 at 20:14:01:
Mr. or Ms. Johnston:
This could be lucrative. The best thing might be to redraw up the documents to create two first notes (or seconds, etc.) Then you buy one of them. both Firsts would have the same priority in the event of a foreclosure. Have it done by a title company. Can’t be too expensive.
But the partners owning the note must agree. Perhaps a small bribe would convice the non selling owner to split the note.
The two partners paying, should have no bearing except when you do credit checks, and you due diligence. If the note is current, the property appraises for enough, and the partners have good credit, it should work.
Publisher, NoteWorthy Newsletter.