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.