Posted by Michael Morrongiello on January 29, 2000 at 22:41:37:
These are excellent clauses to include in your negotiations with a seller who has indicated they will finance you. Thanks for sharing them. I can remember when my “first right of refusal clause” that the seller and myself agreed on allowed me to purchase my own $48K +/- debt (the seller financed mortgage note) for $23K +/- when the estate that held the note wanted to liquidate it.
However, From the perspective of “brokering” a seller financed note, these clauses actually will detract from the value of the mortgage & note instruments that include them. They create uncertainty in the mind of the potential note funder. That uncertainty adds up to greater risk and as a consequence less value for the mortgage & note.