Posted by Bud Branstetter on February 12, 2000 at 21:05:17:
The first thing you will run into is the 90% limit on seconds, so they would cap at 25K. They would also want more return and broker fees so you will lose some more there. Real documentation of age for a 65-25-5 with the down and the second is more saleable.
With a 600 fico a good mortgage broker should be able to get them a loan with you not having to carry back as much.
Is there note buyers out there who purchase SECOND MORTGAGES? - Posted by Aaron Jackson
Posted by Aaron Jackson on February 12, 2000 at 11:32:18:
100k FMV (selling price)
65k (first mortgage)
30k Carry Back (second mortgage)
5k Down
10% interest
$570.42 on First
$263.27 on Second Mortgage
$833.69 payments Total
12 months of pre-seasoned payments in escrow For Second
600 fico score
My question is…
How Much would a note buyer consider this $30,000 second mortgage with 12 months of seasoning?
Your 2nd lien sounds marketable - Posted by Michael Morrongiello
Posted by Michael Morrongiello on February 13, 2000 at 24:02:44:
The ratios of 1st lien to 2nd lien are acceptable. The only thing I find funky is the prepayment up front for 12 months of payments? Why was this done?
You 2nd lien can be sold IF that is the way you wish to go? However is there a balloon payment in the note or does it fully amortized over 30 years?
A PARTIAL sale might be the way to go since most funders including myself would want to limit our overall combined exposure into the deal to no more than 85% ITV +/- , WHY sell the full note for $20K when you probably can get a decent amount of cash out upfront and retain a residual interest for later on.
Michael Morrongiello