Helpful Hints for Note Holders

1. Do not let the Borrower get into the habit of making payments later than the due date or grace period. Be polite but insist on promptness.
    
2. It is a good idea to notify the Borrower by letter at least 6 months before the balloon payment is due. This will give the Borrower plenty of time to begin looking for a way to finance or otherwise pay that last, large payment.
    
3. Regarding the insurance, you should verify first that the policy is issued for an amount that represents at least the full replacement value. Second be sure you are listed a mortgagee, beneficiary, or contract holder on the policy. This way you will be entitled to proceeds from an insurance claim ahead of the Borrower. If you get a notice of cancellation, or for any reason find the property is uninsured or underinsured, immediately contact the Borrower regarding this breach and purchase your own coverage until the problem is remedied.