How to best presnt a seasoned note?

[Mountaintrekker]

Hello all,
I have a question for some of our legal beagles and frequent property purchasers/sellers.
I have communicated my interest in a vacant piece of land and the owner has written me back saying he would be interested in letting it go as he is out of state and doesn't get up here anymore. We are super excited as this is our survivial Valhalla we've dreamed about forever. We haven't come to a price yet, but we have a seasoned note (has paid for over 12 months on time) and has the value of the property we are looking at left on the note and then some I think.
Without getting too personal in our financial situation, we have no debt, but no credit either. No mortgage etc. We would like to put 1/4 of the presumed price down and make payments, or sign over the note. Does anyone know how we would do this legally or to present it in a way to put the seller at ease?
We will most likely be able to pay the entire purchase price this year, we just need a little wiggle room. Should we get an escrow account?
Any info is greatly appreciated! This is the perfect place to build our off-grid home in AK and if we get it, I'll make sure to post pics and updates on how we plunk ourselves into the wilderness and make a go of it.

[Ken]

Hello all,
I have a question for some of our legal beagles and frequent property purchasers/sellers.
I have communicated my interest in a vacant piece of land and the owner has written me back saying he would be interested in letting it go as he is out of state and doesn't get up here anymore. We are super excited as this is our survivial Valhalla we've dreamed about forever. We haven't come to a price yet, but we have a seasoned note (has paid for over 12 months on time) and has the value of the property we are looking at left on the note and then some I think.
Without getting too personal in our financial situation, we have no debt, but no credit either. No mortgage etc. We would like to put 1/4 of the presumed price down and make payments, or sign over the note. Does anyone know how we would do this legally or to present it in a way to put the seller at ease?
We will most likely be able to pay the entire purchase price this year, we just need a little wiggle room. Should we get an escrow account?
Any info is greatly appreciated! This is the perfect place to build our off-grid home in AK and if we get it, I'll make sure to post pics and updates on how we plunk ourselves into the wilderness and make a go of it.

Questions:

Is the note transferrable?

Do any provisions prevent it from being assigned?

Will the seller take back a mortgage?

Will the seller accept a third party note?

Other than convenience reasons, why not keep receiving payments on the note and writing a check to the seller on a monthly basis?

Will the seller give you immediate notice of a late payment well before you become in default? I ask this because you may be relying on a third party to pay your note to the seller. The seller may not be required to inform you of non-receipt of payments unless that requirement in in your written agreement.

My inclination is to advise you to collect on the note owed to you and then pay the note for the real estate yourself each month. The sellers security remains in the land and is memorialized in the provisions of the mortgage and note themselves.

You should know that all real estate transactions are governed by the statute of frauds. If any portion of an agreement is not in writing, it's likely not enforcable.

I'll be happy to take a phone call from you and answer any questions you may have.

[Mountaintrekker]

Ken,
Thanks for the relpy and info. I'm thinking we will go ahead and arrange new terms with the seller and see if he agrees to them. I'll keep the other note out of the equation for simplicity.
If he ownes the property free and clear and we choose to buy it with terms, do you have any suggestions on how to keep it simple and yet cover both parties? I know we can draw up a contract and then when all monies are recieved he can quit claim it to us, is there a better way?

[Ken]

Ken,
Thanks for the relpy and info. I'm thinking we will go ahead and arrange new terms with the seller and see if he agrees to them. I'll keep the other note out of the equation for simplicity.
If he ownes the property free and clear and we choose to buy it with terms, do you have any suggestions on how to keep it simple and yet cover both parties? I know we can draw up a contract and then when all monies are recieved he can quit claim it to us, is there a better way?

Simple mortgage with an accelerated payment option at the buyer's discretion. No accelerated payment penalty. Current interest and principal balance only.

I'd reduce all of that to writing in the P&S.

EVERYTHING - every document, including the P&S - should be reviewed by a lawyer. Obtain title insurance (it's inexpensive and worth every penny). Make sure all documents are recorded. Make sure your lawyer files a Declaration of Homestead for both you and the Mrs.

http://www.touchngo.com/lglcntr/akst...Section010.htm