Posted by Mark Haugsten on July 24, 2003 at 07:29:52:
I was thinking conventionally, however, a hefty dp, with a high, high rate would be available to subprime applicants, you are correct.
The use of a subprime lender or instrument would also tend ot indicate to me that the lender may deal into this a discount on the 65K balance, which is what I wanted the article to suggest to Octavia.
If you can get that first note discounted to 35K there is an additional 30K for profit, repairs, and to sweeten the deal. The debtors’ credit is already dinged with this note, so any discount the lender may note to the credit report is, a) inescapable, a note is going to happen, b) not a result of the actions of the buyer, which can be important in a friendship.