MORTGAGE NOTE BUYERS

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What is a Note vs. a Deed or Mortgage?

A Mortgage Note is a written document, which includes all the terms or conditions for payment and is a Borrower's promise to pay a Mortgage Note Seller. The types of terms and conditions included in a Mortgage Note are:

Amount of the Loan
Interest Rate
Payment Amount
Date of Payments
Whom to Pay
Number of Payments
Balloon Amount if Applicable
Payment Start and End Dates

Although a Mortgage Note may be recorded at the Courthouse, there is also a Deed, Mortgage or Land Contract also required. The Deed, Mortgage, or Land Contract are Security Instruments recorded at the Courthouse and serves as a Lien against the property. A lien states the property belongs to the Beneficiary (Note Holder) until all payments specified in the Note have been paid by the Borrower. Deeds normally also specify:

Whom is responsible for Property Maintenance
Whom is responsible for Property Taxes
Whom is responsible for Fire and other Insurance on the property
Whom the Trustee and Trustor are for the property
Whom the Beneficiary is for the property
Note amount

Therefore, both a Mortgage Note and a Deed work in conjunction together. One specifies terms of the contract for payment, while the other specifies who owns the property until the Mortgage Note is fully paid. A Mortgage Note that is not secured by a Deed, Mortgage or Land Contract would not be advantageous to a Seller since there is no rights for the Seller should the Borrower default on the property.

For additional clarification – the Borrower mentioned above is the person that is normally living in the real estate property sold by the Seller. Although, in some cases, a Seller could have sold commercial type property and the Borrower is promising to the Seller to make payments toward ownership of the property.

DISCLAIMER: Mortgage Note Buyers, LLC is NOT a United States Securities Dealer, Broker or U.S. Investment Adviser. Mortgage Note Buyers, LLC is acting solely as an Intermediary and makes no warranties or representations as to the Buyer, Seller or Transaction. All due diligence is the responsibility of the Buyer and Seller. Any documents received are never to be considered a solicitation for any purpose in any form or content. Upon receipt of any documents, the Recipient hereby acknowledges this Disclaimer. If acknowledgment is not accepted, Recipient must return any and all documents in their original received condition to Mortgage Note Buyers, LLC.

Mortgage Note Buyers, LLC always recommends you seek a competent Lawyer, CPA or Financial/Investment Advisor to determine what is an acceptable Risk for you when considering purchasing any investment opportunity.

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What is a Note vs. a Deed or Mortgage?