Purchase Programs
We offer purchase programs to meet almost every type of situation:
Full Purchase - We purchase the entire note.
Partial Purchase - We purchase a portion of
each monthly payment for a specified period of time with the
seller keeping the balance
of the monthly payment.
Reverse Partial - We agree to purchase future payments at a
specified starting time, the seller continues to collect payments
until
then.
The following is a list of some of the specialized terms and
requirements we have for closing note purchases:
Payment holdback:
On each transaction we retain or “holdback” one month’s
payment from the proceeds due the note seller. This is because
in many cases the transaction closes after the due date of the
monthly mortgage payment and the note Payor may have already
sent out his normal monthly payment to the note seller. In order
to avoid the confusion of collecting this payment we retain one
month’s mortgage payment. If the payment is received by
AMAC, we reimburse the note seller the payment amount. If the
Seller has received the payment they keep it.
Reduction in note purchase price:
Our purchase contracts contain a clause that says if the amount
of payments we are purchasing is reduced by any payment(s)
made to the note seller after we have entered into the contract,
the purchase price will be reduced by the amount of the payment(s).
This is because the purchase price is computed on our receiving
a certain number payments.
In house escrow:
This is a transaction wherein AMAC acts as the escrow holder.
The closing documents are sent directly to the note seller
for signatures and are returned by mail. After verification
and/or receipt of all required documentation, the necessary
transfer documents are sent to the title company for recording.
Upon confirmation of recordation from the title company, the
note sale proceeds are forwarded to the note seller.
Outside escrow:
This is a closing wherein the entire transaction is handled by
a third party closing agent other than AMAC. In most cases this
is a title or escrow company located in the note seller’s
area, although in some states attorneys handle the closing. In
these cases we will forward our closing package to the closing
agent along with our list of closing conditions. The closing
agent will comply with our instructions and obtain the signatures
and documents needed to close. When all conditions have been
met, the closing agent will call for our funds which will be
wired to the closing agent’s escrow account. The closing
agent will then close the transaction by having the transfer
documents recorded after which the sales proceeds are released
to the note seller.
