IN-HOUSE FINANCING...
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3. Look for pre-qualified
developments that have already partnered with commercial lenders. The fact that the seller is "pre-qualified" is not a guarantee of future loans by the commercial lender, but is indicative of some previous research by the lender. Even if there is already
lender relationship, it is still important that the contract terms require the seller to maintain the property's eligibility for commercial lending.
4. Seek other signs of seller financial strength, such as willingness to accommodate
full escrow of deposits until delivery, performance bonds, or voucher control.
5. Be especially careful of a document called a seller's Pagare, which is a Promissary Note. If you do not have possession of the unit, such as in the case of a preconstruction
contract, you have not received anything in exchange for the promise
to pay. You have no control over when the property will be delivered to you. But, you have just signed a separate contract to make payments. If you read the documents carefully, you may even discover that the Promissory
Note contains no references
to the Sales Contract.
This is illegal in the United States, but not in Mexico. In other words, if the seller never delivers the unit or the title, you could still be obligated to pay.