Creating My First Note... - Posted by Chris(Indiana)

Posted by mark on February 13, 2004 at 17:10:46:


This could turn out to be a mess in the making.
Is sounds like you already know what you should do but are seeking some confirmation. Hold out for a better candidate!

  1. How to make an additional $5,000 on any real estate transaction.

Creating My First Note… - Posted by Chris(Indiana)

Posted by Chris(Indiana) on February 12, 2004 at 13:30:19:

Hello everyone, I have a home that I am selling(4/2) and I have a young lady who would like to purchase the home. She has given me a copy of her credit report(minus score) and it really doesn’t look that good. She did purchase a car last summer and is good standing on it. Everything else is a little suspect.

She does have the required down payment and from her job she can support the payments. My questions is if I accepted her would this be a decent candidate to be able to sell the mortgage quickly?

Also does anyone know of a good agency I could register with to get credit reports and scores?


Re: Creating My First Note…Be selective - Posted by Michael Morrongiello

Posted by Michael Morrongiello on February 12, 2004 at 21:07:06:

There would be a whole lot of additional details that would be needed to really determine whether or not a newly taken back seller financed note with this Buyer can be quickly converted into cash…

I suspect from the sound of things that if this proposed buyer has had a lot of past credit issues,then you should not expect any investor interested in your seller financed “paper” to buy such a Note at a hight LTV - loan to value exposure level…

So unless she is putting down a substantial down payment to buy the property that will mean you will either have to steeply discount your Note on a FULL BUY OUT or perhaps consider some sort of PARTIAL sale of the Note to generate some cash to you now with the Note back to you later…

If you can afford to “seasoned” the Note and establish a payment track record, that will help but if your goal is to convert the seller financed “paper” as quickly as possible to a cash sum then it really pays to hold out for a better quality borrower with minimum credit scores at the 600+ level…

To your success,
Michael Morrongiello