Buying a note: use a contract or bill of sale?

Question

I have reached an agreement with a company that is holding a non perfomring note.  It is the first mortgage on the property.  I understand that I will have to file the foreclosure on the home and have an attorney that I am meeting with Friday to handle that.  Do you use a standard real estate contract to buy a note or just a bill of sale?  Thank you for your helpful input.

Kathy Utiss · Answer

Hi, 
Not sure if you ever got this all figured out or not but here's an example of one I used previously. If your dealing directly with the bank request they put in writing an offer of acceptance. Then send bank wire. They should then do the goodbye/hello letter and transfer everything. Sometimes banks get lazy about actually completing the transfer and may require several phone calls for final documents but it does happen.

An assignment for ought to be expected. But I don't think any action can be taken by assignee until hello/goodbye letter is filed. Unless being filed in the foreclosure process which I believe the assignment should work as well. Clarify with attorney.

Monday, April 18, 2005

TO: 
First Indiana Federal Bank
1300 Windhorst Way
Greenwood, IN  
 
Attn: Jerry Schneider

I’m interested in making an offer on the following note.

Fleming
2138 W Thomas Rd
City, State, Zip

Account number is #

In speaking with the owner of my firm I’ve been able to get the offer amount to $5,000.00. We can provide proof that we have the funds to purchase. Please let me state that  the sale on this is  Friday, April 22,2005. Please let me know what we may be able to negoitiate.

Very truly yours,