Posted by Rob on August 06, 2007 at 21:23:55:
A note is only as good as the person making the pmts. Note buyers don’t
play the ‘gifting’ of ‘unseasoned’ games. The true value is what you are
net selling it for. If there is no real down pmt, then the note should be
seasoned for around 12 months.
530 fico 85-95%ltv 9-10% interest - Posted by elliott kelly
Posted by elliott kelly on August 06, 2007 at 14:07:42:
im learning about a new way of doing mortgages based on creating a first position and discounting the note off appraisal. apparently it goes onto some kind of private bidding market where it gets sold off to an insurance company or private investor. the down can be gifted or unseasoned. has anyone heard of this kind of thing before?
im crash testing it now myself but if i can turn you on to it let me know. i dont know if it works yet and i want to know if it sounds plausible.
Re: 530 fico 85-95%ltv 9-10% interest - Posted by Rich-CA
Posted by Rich-CA on August 06, 2007 at 21:40:50:
I cannot imagine why anyone would buy a note with the parameters you listed. I just did a non-conforming loan with a 795 FICO, 80% LTV and got 8% interest. A note is only as good as the one paying on it. This would have to be very heavily discounted to be interesting.
Remember, an investor can put their money in ING Direct and get in excess of 5% with zero risk (federally insured). A 530 FICO is a LOT of risk. You either have to scale up the interest paid, down payment or discount the note.