(another War Story from our years in the business….)
Can you imagine doing ALL of the work to find, evaluate, and submit a
note, and have it go ALL the way to the closing table, and then…the
seller doesn’t show up to pick up his money?
I mean, even if you’re the seller and you’d gone through all that work,
one would think that receiving a large sum of cash would be just the
ticket!!
That is…unless…
You’re a 70 year old man who is wanted by the Feds for selling stolen
cars, and want a bunch of money to pay off all your debts and move to
Canada…only to find out that you can’t get Medicare in Canada!
Really?
Yes, that happened – the seller’s getaway, to be funded by the
proceeds from the sale of his note (on a motel), didn’t happen because
he couldn’t get Medicare in Canada. SO…he stayed in the U.S. and filed
bankruptcy…only to be told by the BK judge that he HAD to pay the
10% liquidated damages clause that is standard in all of our note
agreements!!
National Note Funding, and our broker, still got money for all their
efforts, and our squirrely seller got a special vacation courtesy of the
Feds.
And NOW YOU KNOW why it’s SO important to always get a Note Option to Purchase
Agreement signed!! (and yes, we’ll gladly provide you with one once
your deal is accepted by the seller)
