Comments on: How to Endanger the Sale of Your Seller Carry Back Note: Lose the Original http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/ Owner financing help, title holding land trusts, owner will carry, benefits of seller financing, defer capital gains, what is my note worth, sell my note for cash, create a good note; Pasadena, Temple City, Alhambra, San Gabriel, Arcadia, Sierra Madre, El Monte, Rosemead, San Marino. Sat, 14 Jan 2012 23:28:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Sandra http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-2311 Sandra Fri, 05 Mar 2010 02:16:21 +0000 http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-2311 what happened to all the notes held by Alliance Bancorp or those other financiers which failed? Most were sold to Chase, GMAC, etc., but what are those really? Assignments, servicers? its confusing...and in the end, who can collect if the note isn't paid? what happened to all the notes held by Alliance Bancorp or those other financiers which failed? Most were sold to Chase, GMAC, etc., but what are those really? Assignments, servicers? its confusing…and in the end, who can collect if the note isn’t paid?

]]> By: Dawn Rickabaugh http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-396 Dawn Rickabaugh Thu, 12 Jun 2008 20:03:50 +0000 http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-396 Doug, Thank you so much for your insight and information. I really appreciate the clarification. One of the great things about blogging is that you often have the opportunity to attract people who know a lot more than you do, just by starting a conversation! And I love your title... Seller Financing Evangelist, that's perfect! Doug,

Thank you so much for your insight and information. I really appreciate the clarification.
One of the great things about blogging is that you often have the opportunity to attract people who know a lot more than you do, just by starting a conversation!
And I love your title… Seller Financing Evangelist, that’s perfect!

]]> By: Doug Bertram http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-394 Doug Bertram Thu, 12 Jun 2008 17:57:36 +0000 http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-394 Hello Dawn, As the Seller Finance Evangelist for the largest 3rd party long-term escrow servicer in the US maybe I can shed some light on this question. Being a Holder-In-Due-Course (HDC) has less to do with physical "possession" and more to do with the fact that you purchased (otherwise defined as taking possession - not necessarily physically) of the instrument (in this case the note) without any apparent defect in the instrument nor any notice of dishonor (Black's Law Dictionary 2nd Pocket ed. 2001 pg. 322). Per most servicing agreements with the note servicer you can have access (physically) to the note at anytime - effectively giving you possession (just like you would have if you kept the document in a safe deposit box). The "challenge" you mentioned was probably the only way the attorney involved could justify their fees. Doug Bertram Seller Finance Evangelist NoteWorld.com Hello Dawn,

As the Seller Finance Evangelist for the largest 3rd party long-term escrow servicer in the US maybe I can shed some light on this question.

Being a Holder-In-Due-Course (HDC) has less to do with physical “possession” and more to do with the fact that you purchased (otherwise defined as taking possession – not necessarily physically) of the instrument (in this case the note) without any apparent defect in the instrument nor any notice of dishonor (Black’s Law Dictionary 2nd Pocket ed. 2001 pg. 322).

Per most servicing agreements with the note servicer you can have access (physically) to the note at anytime – effectively giving you possession (just like you would have if you kept the document in a safe deposit box).

The “challenge” you mentioned was probably the only way the attorney involved could justify their fees.

Doug Bertram
Seller Finance Evangelist
NoteWorld.com

]]> By: Dawn Rickabaugh http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-378 Dawn Rickabaugh Fri, 06 Jun 2008 18:39:37 +0000 http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-378 Alan, This is great information! It makes sense and I'd never thought of that for private note holders. My questions is this: To be a holder-in-due-course, I need to have possession of the note. If I don't have physical possession, I wonder if I am jeopardized in any way? I heard of one situation where the "possession" was challenged because the note servicer had the original note, not the note holder. Doesn't make sense, though, because if I put it in a safe deposit box, someone could argue that the bank had possession, not me, which is ridiculous! Great contribution. Thanks! Alan,

This is great information! It makes sense and I’d never thought of that for private note holders. My questions is this:

To be a holder-in-due-course, I need to have possession of the note. If I don’t have physical possession, I wonder if I am jeopardized in any way? I heard of one situation where the “possession” was challenged because the note servicer had the original note, not the note holder. Doesn’t make sense, though, because if I put it in a safe deposit box, someone could argue that the bank had possession, not me, which is ridiculous!

Great contribution. Thanks!

]]> By: Alan Bardwell http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-376 Alan Bardwell Fri, 06 Jun 2008 11:05:33 +0000 http://notequeen.com/2008/06/05/how-to-endanger-the-sale-of-your-seller-carry-back-note-lose-the-original/#comment-376 There are insured safekeeping companies who will hold the documents for the note owner....much like a stock brokerage offers to hold your stock certificates. Pretty cool, cuz note ownership can change hands while the note can stays in the same place. "Real" mortgages, funded and then sold by financial institutions, have to be "certified" by the safekeeping company....this means an inventory list of all documents associated with the MIQ ("Mortgage in Question") file has to be accounted for and signed, thus Certifying that the mortgage, note, and associated documentation are, in fact, in the vault of the safekeeping company. Somebody goes to jail or writes a big check if they lie about what's in the vault. There are insured safekeeping companies who will hold the documents for the note owner….much like a stock brokerage offers to hold your stock certificates. Pretty cool, cuz note ownership can change hands while the note can stays in the same place.
“Real” mortgages, funded and then sold by financial institutions, have to be “certified” by the safekeeping company….this means an inventory list of all documents associated with the MIQ (“Mortgage in Question”) file has to be accounted for and signed, thus Certifying that the mortgage, note, and associated documentation are, in fact, in the vault of the safekeeping company. Somebody goes to jail or writes a big check if they lie about what’s in the vault.

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