Exchange Intermediaries
Experience indicates it not unusual for an Exchange Client involved in a Delayed Exchange to take a promissory note as boot to balance equity on the property relinquished or execute a promissory note to balance the equity on the property being acquired.
Although this considered “unlike” property received or given, we have assisted qualified intermediaries (accommodators) in taking care of the collection and servicing on the note.
If the note is not assigned the situation could involve an installment sale within the Exchange. Exchangors and Intermediaries tell us they have found it difficult to locate a professional note and loan service provider, with the experience and ability to take care of the monthly collection, distribution, processing as well as management and reporting during this short term.
The owners of Note Servicing Center have been involved in 1031 tax deferred exchanges both as principals and brokers for over 45 years, they understand the nuances involved in a 1031 tax deferred exchange. The sole business of the Note Servicing Company is to provide accurate, reliable Note Servicing and Trust Deed Management.
Our clients include Trust Companies, Title and Escrow Companies, Pension Administrators, Attorneys, Accountants, Real Estate Brokers and Lenders. Our computer system meets the requirement of Bureau of Real Estate Trust Fund Accounting and is updated as new regulations occur. The Note Servicing Center is Bonded and Licensed by the CA Bureau of Real Estate and is authorized to service loans providing the Trust Account is under the jurisdiction, auditing and reporting of that Bureau.
No Note is too difficult to service regardless of the terms, payment schedule and/or security of the debt instrument. There is no penalty to cancellation providing a 30 days’ notice is received. Our services can be tailor made to suit the needs of the Exchange Client.
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Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind. Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal. Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances. Some articles on this site include hypothetical stories, examples, and scenarios created to illustrate concepts and demonstrate the types of situations Note Servicing Center, Inc. handles. Any names, companies, properties, and circumstances in these examples are fictitious or have been anonymized to protect confidentiality, and any resemblance to actual persons or entities is coincidental. These examples do not describe specific clients and do not guarantee any particular outcome. Some content may be created with the assistance of generative AI tools and may contain errors or omissions. While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.