Re: JP - creative mortgage question - Posted by J.P. Vaughan
Posted by J.P. Vaughan on December 01, 1998 at 17:30:20:
Glad you liked the article. You are creating what is
called a “purchase money first.” There is no seasoning,
and as long as you have a good LTV, that shouldn’t
matter, and neither should your credit. I believe I
mentioned that we “prepay” the first 6 months.
There are institutional lenders who will buy this kind
of note these days.
We sold to private investors from newspaper ads, etc.
When there are very few firsts in the marketplace, and
when most available seconds are junk (like in today’s
market), you should be able to sell these notes quickly
as long as you are offering a good yield and a low LTV.
You may be having problems because you are not dealing
with PRINCIPALS but with “finders” who don’t really
know what they’re doing. Always deal with the principal.