Posted by David Alexander on June 03, 2000 at 13:29:31:
For another buyer. The numbers dont add up.
800/month without Taxes and Insurance will give you a 7.6% interest rate, if amortized over 360 months with 113k as the PV.
That would hardly be a sellable note, your going to have to give the notebuyers a yield of at least 11-14% unless the payors have perfect credit, in that case get them a loan. But a loan still wouldnt work if they can only afford 800/month.
David Alexander
ATTENTION Note Buyers - Posted by Rich Miller
Posted by Rich Miller on June 03, 2000 at 11:35:17:
Here’s the situation:
I have a party interested in a SFH priced at $119k full appraised value. The potential buyer has $6k for downpayment. They can afford $800 per month payment. Husband is self employed. Wife is housewife. His credit rating is 550 (divorce and failure to pay student loan).
Is there any way I can sell a note based on this info? How should I structure it to get what I need to pay off the existing $102k mortgage. Will seasoning help? and for how long?
Please let me know.
Thanks.
Rich