$35,000 note what can I do - Posted by Rodney Shultz

Posted by Bud Branstetter on October 17, 1998 at 15:55:18:

A question comes to mind. Why not refinance the whole property? Yes the second note could be refi’d with a mortgage or another note. The values and such will depend on the value of the property, your payment history and the loan to value on the property. If you want a particular number you can email me particulars and I can give you numbers.

$35,000 note what can I do - Posted by Rodney Shultz

Posted by Rodney Shultz on October 16, 1998 at 14:03:09:

Hello: I hope I can Find a anwser!
I have a property that I have owned for 5 years,I bought it
with the owners taking back a $35,000 2nd. it was set up to
have a 3 year ballon,but I have just gone through a divorce and the note holders were very patent & understanding but
now want there money.
My question is there a way I can right a new 2nd and have
a person willing to buy that note right away.
I realize there is a discount,but I have no idea what that
would be or if this is even possible?
I would love to hear all comments

Re: $35,000 note what can I do - Posted by John Behle

Posted by John Behle on October 18, 1998 at 14:01:19:

Bud’s advice is good. Your best bet would be a refinance or at least a new second. If you’ve owned the property 5 years, the LTV should be such that you could take out the old second with a new one or a home equity line of credit (H.E.L.O.C.). That should be cheaper than creating a new note and selling it.

You can create the note and do what you suggested, but you will still need to have a decent loan to value ratio and credit will be a factor. Yields for discounted mortgages are higher than the rates for a new second and in this market - until financing for seconds and home equity loans dries up - it will be easier and cheaper.