Posted by Mark-NC on May 16, 2000 at 19:23:50:
To answer your questions,
The fact is the seller is partially right. It’s not that they won’t buy it, it’s the fact that it would not be that attractive to them at a low rate. The result of a Note buyer Purchasing a Low rate Note would be a very heavy discount to the seller of the Note. The fact is a rate of 9.5% is not going to give the seller a top dollar buy rate on that note. Depending on the credit and down payment I would suspect a discount of 10 to 20 percent. You have to consider many note buyers are borrowing money to buy the notes and if there is not a spread in the interest rate the only way to make money is on a heavy discount.
You can have the seller sell a brand new unseasoned Note at close, it does not have to be seasoned at all. This would cash your deal out. If you did it this way, when the Note was funded at close it would pay off any existing liens and cash her out.
If you need more info on this contact me via email.