partial questions - Posted by mike

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

partial questions - Posted by mike

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

Hi,

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?

Thanks,
Mike