Posted by David Alexander on October 20, 2000 at 18:35:31:
Is someone making payments to you on a mortgage. Plenty of people will purchase them, depending on the structure, collateral, payors, history, etc.
David Alexander
Discount Mortgages - Posted by Dante Muhammad
Posted by Dante Muhammad on October 20, 2000 at 14:12:17:
Greetings:
I have a question about Discounted Mortgages. I am trying my best to understand them. I can’t quite grasp the concept of where to find someone who will purchase one from me, and how is the money transacted.
Any advice?
Here is an example…(long) - Posted by Ben (NJ)
Posted by Ben (NJ) on October 22, 2000 at 07:55:53:
let’s say you own a home and are having trouble selling it. To widen your sphere of buyers, you offer to take back financing to assist buyers who cannot qualify for a mortgage. You sell the property and now you are receiving monthly payments on the mortgage. Six months later, maybe you really need that lump sum of cash or maybe the guy is paying late every month and it is getting aggravating. You turn to the secondary market, a place like America’s Note Network, and offer the note for sale. You will offer to assign your rights to these monthly payments in exchange for a lump sum of cash. Most likely will have to take a discount, i.e if you are owed $100,000 you may be offered $85,000 due to the concept of time value of money.(i.e, your right to collect a dollar next year is only worth 50 cents today). That is the simplified nutshell example. Hope this helps.