Naples, FL · Member since 2017 · 30 posts · 6 votes
I started a subdivision and did phase on of three. I decided to sell the land for phase two and three to a local buyer who indicated he would like to buy for than one or two lots...So I said...sure buy em all. He said fine and I have cash. Great i said.
So I told him that he could save about !00K or more if he went and bought the note from my banker and then have the seller...me ... transfer the deed to the buyer at closing. Worked great and the banker complained about the low all offer to buy the note...but on the third attempt, the bank said ok...saved $110,000.00. No lawyer...just a two paragraph letter delivered to the head loan officer at the bank.
First, I'd be careful in colluding with the buyer of a discounted note when you are the borrower. Next,
the transfer of a note can be far simpler than a deed transfer. A notarized bill of sale works in some States. I'd consult an expert - which I did when I bought notes.
Make sure that you get a loan release when you transfer that deed to the buyer.
Brian...thanks..... if you buy a note and get a deed transfer it works easily once the banker or lender agrees...might take a few arm twisting but they do not want non performing notes at the bank.
Pretty easy really...and gets a owner off the sherrif sale hook and the bank is finished with a deal going bad fast.