As intangible pieces of personal property, promissory notes are
freely assignable in most instances, aside from contractual
limitations. There has historically been a market for note sales in
the realm of real estate. Today, however, there exists a market for
the sale of various types of notes. In recent years, not only
banks, but hedge funds began to consistently make loans, which were
in turn bought and sold to third parties. This expansion of note
sales has led to complications regarding what party possesses the
right to enforce, and thus sue on the note or foreclose against the
maker-mortgagor. Many investors and financial advisors now
encourage individuals and entities to participate in note
transactions. While note sales present numerous benefits, they also
encompass risks which require evaluation by buyers and sellers.
Both parties should seek capable legal assistance when entering
into a note sale agreement, due to complexities that can arise in
such
