Posted by Michael Morrongiello on August 07, 2003 at 23:38:56:
First off WHY sell a property with NO MONEY DOWN? as this is not the norm?
One of the criteria for evaluating a “good note” is to determine what the Note payors have at risk? With a NO money down purchase they have NOTHING at risk except for the payments they have made to date on the Note.
A few months of payment history or seasoning will not change that viewpoint much unless there are some other extenuating circumstances that might exist such as they put “sweat equity” improvements into the property, or their related to the seller and this was a “sweetheart” sale at a price below the true market value of the home, etc.
We’ve (Sunvest) purchased numerous files over the years with scenarios just like this…
However It is always best to obtain something from the payor so that they in turn feel psychologically obligated and committed to making the future payments on the loan.
To your success,