partial questions - Posted by mike

Posted by Michael Morrongiello on April 23, 2002 at 18:06:45:

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

partial questions - Posted by mike

Posted by mike on April 22, 2002 at 21:29:40:


I have a question about selling a partial. Say you want to sell part of each monthly payment, and you want to structure the partial so u still get some monthly cash flow, what happens the note is paid off early? What if you have to repo the collateral? What happens and how is this handled?