selling seller's second - Posted by Bill

Posted by Sean on May 02, 1999 at 11:35:04:

FICO Scores are created off of a person’s credit profiles when run through a computer algorithm created by Fair Isaac COmpany (“FICO”). The algorithm was created by examining about 750,000 people’s credit reports and comparing them with their credit reports 24 months earlier.

Approximately 45 different clues were determined to have been on people’s credit scores that indicated a statistically significant higher risk of a person failing to pay as agreed. A computer model was created so that these risks could be translated into scores.

A person who has a FICO score of 680+ will fail to pay as agreed within the next 24 months only one time out of 11. Accordingly your ratio of performing loans to non-performing loans will be about 10-1. A FICO score of 681 or more is considered to be quite good.

For more information contact

selling seller’s second - Posted by Bill

Posted by Bill on April 29, 1999 at 19:36:17:

I’m closing on a house on Monday that I rehabbed and sold. I will be holding a seller’s second mortgage (purchase price $118,000, first mortgage @$100,000, my second at $12,000). The buyer is a 25 year Chrysler employee with decent credit. My question is…when is the best time to sell my note and where should I try to sell it. I don’t mind waiting a few months to improve my return and let the note season but I would rather have the cash than the income stream. The note is an interest only note for 5 years at 10% with a full principle ($12,000) balloon. Thanks for any advice.

Re: selling seller’s second - Posted by Bud Branstetter

Posted by Bud Branstetter on April 30, 1999 at 14:28:10:

Do you know what credit score the buyer has? In one of the posts below I mention a
source that with a score of 681 or better they would do 95% funding at 9.65%.
I imagine that the first your buyer is getting is may be less than that but the risk on it is
reduced because it is only 85%. Doing that makes the resale value on the second much less. I doubt that you want to redo the loan at this time. Next time you will be aware of what is available and best suits your need.

Re: selling seller’s second - Posted by John Behle

Posted by John Behle on April 29, 1999 at 21:47:11:

Down below in the newsgroup are many sources and even websites of buyers. Seasoning doesn’t mean as much nowadays, but LTV is still important. In this case you are looking at a 95% LTV. Many buyers are going to shy away over that - especially when it is a second in back of an 85% first. Try listing it for free and calling some of the buyers at

Re: Please translate FICO scores for newbie - Posted by Ben

Posted by Ben on May 01, 1999 at 13:26:40:

Can you explain the significance of the FICO score and
what the range is, etc. Thanks.