Posted by Michael Morrongiello on October 17, 2009 at 11:20:04:
In Reply to: Can I sell a note on my own property? posted by Catherine on October 15, 2009 at 21:10:30:
Catherine:
Tom Henderson (the Note Professor) alluded to this...We have been seeing this same scenario play out lately over and over again. A Balloon payment due date is imminent and /or now due and the borrower may have difficulty in taking out the balloon or does not want to take out the balloon and tie up all of their cash into the property.
In fact in my Home Study Course; The Unity or Real Estate and "paper" we have a few CASE STUDIES which address variations on this same theme.
One Possible Solution:
Have the Note holder agree to work with YOU, and a Note Investor where the existing Note can be formally restructured and modified so that either the pending balloon payment is pushed out or fully AMORTIZED out (where no balloon payment will exist).
This may require some tinkering with the interest rate, monthly installments, etc.
Then this "new" modified Note is sold off to provide CASH liquidity for the Note holder.
The Note buyer/investor acquires a good seasoned Note.
The payor on the note gets breathing room and Everyone Wins!
We've bought dozens of loans under these circumstances.
Continued best to your success;
Michael Morrongiello
Paper Practioner
www.sunvestinc.com
Author of the following home study courses;Paper Into Cash - The Convertible Currency - How to Effectively Create Marketable Real Estate Notes
&
The Unity of Real Estate & "Paper" - Advanced techniques for both the acquisition and disposition of properties using Real Estate "paper