If an 80% 1st TD loan was available, what would be the best way to structure a 2nd TD note for the remaining 20% so that the note would yield the maximum when sold at the closing table? Or would it be better to do a split 2nd and 3rd TD, selling the 2nd and having the seller keep the 3rd?
What type of maximum investment to value would be involved/required?
Creating note for short sale - Posted by Brad, PLS (OR)
Posted by Brad, PLS (OR) on December 31, 2002 at 17:51:02:
I am looking at a house for my own residence that is in the process of being foreclosed.
It is listed by an agent for 220k but states to “make offer subject to short sale”. Since the loan balance is in excess of the asking price, I assume that the seller will dump the house as long as the TD goes away.
My credit isn’t the greatest, and I would like to create a note for say 175k, interest only for 3 or 4 years and offer the lender 170k cash.
Any resulting seller financed “paper” (Note) will be judged and graded on some of the following criteria;
your down payment at risk
Your overall credit profile
your credit scores
Your employment and stability
your income coming into your household
Newly created owner financed “paper” is often similar in many ways to sub prime loans. Contrary to some belief there IS some qualifying, albeit its far more relaxed than traditional mortgage originations.