Posted by James Strange on December 16, 2002 at 19:14:43:
- By what method is a seller-financed loan incorporated into a credit report on the borrower?
The seller would have to signup with a service and report the loan. This is not cost effective so most do not do it. The seller gets no benifit but has to pay.
- Is there any discretion to this process, ie could the borrower specifically opt-in or opt-out of this process for whatever reason?
No it is up to the one lending the money.
“and/or is otherwise verified in future reviews of either lender”
If the borrower wants to show that they have been making mortgage payments they will need to show front and back cancelled checks. Money orders receipts will carry weight. Receipts from the seller carry very little weight. But it will not affect the FICO score.