1./ Steady empoyment
2./ How much of their own money they put down.
3./ Their credit
4./ The loan to value
5./ The collateral
You don’t ask the note buyers, they will tell you what they will pay you for a particular note. I have seen discounts, assuming its owner occuppied for as little as 94% - 95% of the face value of the note. However these small discounts are with good credit people with proper loan to value ratios.
The fact that your buyers do not have good credit will present a problem with these note buyers. They will either refuse to buy th note or discount it substantially.
A larger downpayment can negate some bad credit.
Contact John Milone at miloneco@aol.com
John has dealt with Wentworth before. I have not.
Posted by Nadine Spiker on April 03, 2000 at 13:42:09:
This is to anyone who can offer good advice. I contacted a company named JG Wentworth about buying my note. I would like to see at least 85% is that asking to much on a new note? The buyer has not so good credit but have proven themselves worthy by paying all their monthly bills on time. They are also in the process of consolidating the smaller things on their credit report. Should I try for 90% if they offer it? JG Wentworth will be calling me back within the hour. Thank you for any and all the input you offer.
Nadine:
If you are able to clearly document these blemished payors payment history to you of their payments many times a note funder that evaluates file on a “common sense” basis can look past some of the prior sloppy credit.
Additionally some of the issues Phil suggested also come into play. Whomever you decide to work with provide them with COMPLETE documentation so that they are providing you with some CONCRETE pricing instead of “wishy washy” quotes that are really meaningless until a proper review & underwriting of the paperwork, payor credit issues, etc. takes place.
It is a disservice to you and to a note funder to work any other way.