Note Paperwork

[David Fair]

What type of paperwork are you using when selling notes. Purchase and Sales Agreements or other forms between note seller and note buyers.

[Jeff Rabinowitz]

I am not sure if you mean issues with the property or the chain of title. If you are concerned with title you should be able to order a lender's title policy. It would be best to check before you purchase the note.

A clause requiring the mortgagor (borrower) to keep hazard insurance in force is probably already in the mortgage and/or the note. If not, I would be hesitant to purchase the note without legal review because I would be concerned about what else was overlooked. A lien holder should be able to purchase hazard insurance on the property themselves if they wished to.