Posted by Michael Morrongiello on April 23, 2002 at 18:06:45:
Mike:
Whether a “straight” PARTIAL, “shared payment” PARTIAL, “Balloon Split” PARTIAL or some other permutation of a Note sellers cash flow is sold, there are usually (2) Two Schedules that are prepared that will track the repayment of;
A) The actual Note repayment terms and its amortization
B) Often called “Schedule B” a PV - present value which represents the PARITAL interest and its repayment amortization
When or IF a early prepayment or a default takes place to the Note during the time its being collected under a PARTIAL purchase arrangement, one will typically refer to the Actual Note repayment schedule along with the PARTIAL Schedule B repayment schedule along with the Note purchase agreement to determine WHO is do WHAT and HOW that is to be handled…
To your success,
Michael Morrongiello