Steve:
Seller financed mortgages and notes are considered “non-conforming” type mortgages. When the note and mortgage is sold it is Discounted from its “face” or current balance. This helps offset the time value of money element, and risk associated with the future performance of the note.
Seller financing using the Beacon Program - Posted by Steve Sinner
Posted by Steve Sinner on January 31, 2001 at 12:46:06:
When Seller Financing is used and when an investor purchases his note at the closing(using a “simultaneous
closing”) does the investor discount the note or does the
Seller get full face value for his note sold at the closing?