What if note buyer doesn't close?
Hi,
I would appreciate advice on how you can be sure the note buyer you're working with will actually close the transaction.
I knew a mobile home park owner who had some notes to sell. I was contacted by a person who buys MH notes. They stated that they've been buying notes for eight years.
This person had a contract with the seller to buy 2 notes. He required the transaction to be handled through an escrow company and agreed to pay all closing costs (also in the contract). he gave the instructions to the escrow company and required much paperwork and legwork from the seller.
When it was time to close, the buyer felt the escrow charges were exorbitant and refused to close.
Now, I'm not so worried about my loss of fees (they were small), but this put a lot of hardship on the seller who was counting on the funds.
After this experience, I don't want to be in the middle of any note transactions. Really, note brokering/finding isn't in my long term plan anyway.
Would love to hear your advice and experiences.