All Forum Posts by: Alan Noblitt

Yes, I have been buying notes for 21 years through Seascape Capital.

Alisha,
I would second what Jon said about talking with the note holder. When some of our notes reach the balloon date, we are happy to extend it out for a few more years. Of course, our business is buying notes, so this doesn't apply to everyone. Have a talk with the note holder. Most note investors are like us and will only foreclose as a last resort. Extending out the balloon for another few years could be a win for both of you.

If the note holder won't do that, recommend that the person sell the note to an investor, and then try to deal with them. Good luck.

Regards,
Alan Noblitt

Run away from this one ... FAST. You're most likely going to end up paying more than the $10K property value, with maintenance and repairs, insurance, foreclosure, etc. In note buying, it is critical to have an equity buffer so that you can tolerate the inevitable surprises.

Be sure to document all of your conversations with her and send certified mail letters outlining what is due. For your first question, she needs to pay the whole thing, as most notes state that the amount paid is first applied to interest and then to principal. The answers to your second question are yes and yes. If you're not sure how to do the calculations, then do consider a servicing company, but check them out thoroughly first. Most are good but some are truly awful.

As a note investor and owner of many notes, I know who pays on time and who doesn't. If the payments are due on the 1st, you should pay by then or within a few days afterward. When someone is making payments to me on time over a long period , I am more likely to cut them some slack if they have an occasional late. I have less patience and will do less for someone who is taking advantage of the grace period.