Proof of Payments To Sell A Note

2012 October 24

Sadly, a number of note holders allow their borrower to pay their monthly note payment in cash. And while most write a receipt, when it comes time to sell a note they discover that hand written receipts for payments do not qualify as a proof of timely payments on a note. Think about it. A note seller could simply sit down and write a couple dozen receipts in a few minutes on a note that payments have either not been made of have been over 30 days late many times just to sell a note for more. It’s unfortunate that we can’t use these as proof of payments. However, that doesn’t necessarily mean we can’t buy a note. If there are other offsetting factors such as a big down payment, strong credit or a lot of equity from seasoning, we may can still buy the note. Having said that, you still are better off getting checks or money orders and keeping copies.

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