Orignation Vs Seller financed - Posted by Michael Morrongiello
Posted by Michael Morrongiello on August 03, 2005 at 14:58:02:
Are you ORIGINATING this Note as a Loan against this individuals home and personal residence?
This sounds like a “refinancing” and If so, you may be subject to State and Federal Regulatory, disclosure, and predatory lending requirements.
Notes created as the result of a bonafide SALE of a property (eg. seller carry back or seller financed Notes) are “clean” and typically exempt from the worries outlined above.
If the Note being created is Subject to such requirments, and the requirements were not propertly met, any future assignee (purchaser) of such a loan would have to look at it as “damaged goods”.
Best to your success,