Re: american note network & selling first mortgage 63%LTV - Posted by Paul_NY
Posted by Paul_NY on June 22, 2000 at 04:15:13:
ANN is great. Quotes to buy your note will come in for a week. All will try to get you to commit right then on the phone.
Make your 1st mortgage for 80% of the appraised value. Don’t you want the most cash from the sale of the note? Make the first as big a possible and the second as small as possible. What if the payors default? You may get little or nothing on the second. Also, try to get a 10% or better down payment (The notebuyers like to see a downpayment) and document everything, including the monthly payments received during the seasoning period. Seasoning is a record of the monthly payment received from the new buyer of your property. Three months is minimal seasoning.
The best notebuyer offers will be 90 cents on the dollar unless the credit of the payor is outstanding. The 97% advertised by notebuyers is for payors with excellent credit. In the owner financing field, they are few, otherwise they’d be getting a better interest rate at the bank.
Most notebuyers will want a nationally certified appraisal, so you may have to pay for another appraisal. Also, figure in the cost of a Lenders Policy.
Hope this helps.
If I can be of further assistance, email me.