Re: Discounting a note - Posted by Ed Garcia
Posted by Ed Garcia on February 22, 1999 at 09:55:54:
First of all I like the answer that Bud Branstetter gave you.
He was making the note more attractive so it would be more marketable.
Secondly, it?s interesting how each of us see things so differently.
Casey, you would be surprised how many people out there have good
credit and no money for a down payment.
I personally would advertise the house as a no money down, 100%
financing on approved credit. Today there are 100% programs all over
the place for people with good credit owner occupied.
In the event I had a potential buyer who?s credit was not A, but B or C.
Then I could have my mortgage broker do it at 75% LTV through a
company like, First Franklin, BNC Mortgage, North American,and
even Countrywide has B and C programs now to name a few.
These companies have programs that will allow me to carry back 25%
still making it 100% financing to the buyer.
That gives me $40,500 and I would have to work out the cost between
me and the buyer.
First Franklin, has a program where they?ll finance a deal 100% and
allow the seller to pay up to 6% cost, on a borrower with good credit.
Casey, I thought I?d give you just another point of view.