A question came up regarding helping a divorcing couple liquidate their privately held mortgage. They had sold their last home with owner financing and carried back the note themselves. They are getting a divorce and are not quite sure how this can work.
There are investors out there such as Cabin Creek that can provide cash and purchase that note from the note holders and in this situation could solve every one's problems. The note gets purchased for cash and the divorcing couple can split their share in half and it is a win/win situation for everyone involved.
One other great scenario. A couple holds the note on a owner financing house they had sold. They are currently receiving monthly payments from the new owner of the house. Where this couple may like receiving the monthly payments, their oldest child is now ready to go to college. This couple can actually sell a portion of the note they hold for possibly the cost of tuition for their child and once the investor's money is payed back from the owner currently making the payments, the couple may continue to receive the remaining monthly payments.
This accomplishes two things. First the couple gets cash to pay for college without incurring any further debt such as student or parent loans, and second the couple will still receive monthly payments just further down the road so they did not give up all the income just enough to pay for the college tuition. Partial purchases are very common.
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