Frequently Asked Questions:
How long does the entire process take?
The note sale process takes 16-30 days on average.
Who pays the closing cost and other related escrows fee’s?
1. Central Valley pays for all closing and transaction related costs.
2. The closing will be handled through the title company or closing agent that handled the real estate sale.
The note is evaluated for purchase and a purchase offer is made to the note holder. Once the purchase offer
has been accepted by the note holder, we send out a purchase agreement with our list of required escrow
documents that will be needed.
Escrow documents required:
1. Copy of the Final Closing statement – this was prepared by the closing agent at time of the sale.
2. Copy of the Promissory Note.
3. Verification of Payment records for the past six months. (This is requested – not the hard rule).
4. Verification that the payor has hazard insurance. (Homeowners insurance).
Once we have received all the proper documentation from the note holder, we place an order with a local realtor
or appraiser to verify the market condition, and overall property value. This is determined by a drive by evaluation
only – not an internal home inspection. (The valuation process typically takes 3-7 days).
Concurrently, we set up our escrow for the closing with the closing title co or closing agent that handled the
sale of real estate between the current payor and note holder.
Usually within 7-14 days, the property evaluation will be completed and our required escrow has been set-up
for the completion of our transaction. At this point our closing package is prepared and sent to the title
company for the escrow to be completed. The note seller will have to schedule a time to visit the title company
to sign the documents. If they are not within driving distance or out of state then the final closing package is sent
via overnight mail, via UPS or Fed Ex, etc.
During the purchasing process, we consistently update the note seller and maintain contact via phone or emails
until completion of the transaction. We cover all closing fee’s for the note purchase transaction. Our typical
protocol is to use the same title company or attorney/closing agent that handled the sale of the real estate
between the parties.