There are some many ways to protect yourself from outside closings by selling mortgage notes.
It all depends on when all the research is done by the investor and they are fully ready to purchase a mortgage note.
Then they will head out and ask the seller to obtain and send them the original documents and finish by signing the transferred parcel. The reason for this is because the note purchaser wants all of the original credentials before any of the money is released to the seller.
Because of this transaction there may be some confusion on the seller’s behalf. Therefore, below is a simple solution to help the buyer and seller for this process.
The overall challenge for selling mortgage notes is that the seller will want the money prior to any of the documents being released or sent to the buyer. Moreover, there are always questions regarding if the seller will actually receive the money once they turn over all the documents.
This is normal for most people, however, there is a simple solution to fix this problem.
The Simple Answer
When a person decides to use an outside source, such as a title company or even an escrow company can solve this problem fast and effectively. If there is an outside closer utilized then they act as a third party that safeguards both parties.
What they can do for the transaction is act as a mediator. They will receive the funds as well as the documents in one setting allowing for there to be no confusion or mistrust.
To top that off each party does not have to be required to be in attendance while the note transfer is taking place. The costs for using the third party option can be split between both the buyer and seller or paid by one side.
As long as the third party closer is licensed and bonded they will be official for all of these needs. The answer to using an outside closer allows protection for both parties and allows the transaction to be done fast and efficiently.