simultaneous closing - Posted by kent

Posted by Michael Morrongiello on August 13, 2007 at 15:09:57:

There are still firms that will purchase newly taken back or created seller financed “paper”… (

However as the landscape or market conditions change so do the qualifying, underwriting, and pricing parameters. Expect much more conservative loan to value funding exposure levels, more money required as a down payment from the buyer and / or seasoning to offset light down payments, and MUCH higher interest rates suggested on the carry back paper.

Think of it this way… if you were under contract to buy a home for $100K of your cash, that you knew the day of the closing was no longer even worth $100K as its value… would you close?

The same is true with the mortgage marketplace the resulting fall out that is going on right now. Why should an investor invest their $$$$ into a mortgage instrument that may be and is probably worth far less (to themselves and others) in this changing marketplace than what they are actually investing…?

Expect the worse but be prepared. Using seller financing is STILL one of the few ways to create liquidity in your sales process by eventually moving through the “paper” to get to cash. Accept that reality and the reality that you may not be able to sell at all if your buyers can no longer readily obtain financing.

Best to your succcess;
Michael Morrongiello

simultaneous closing - Posted by kent

Posted by kent on August 11, 2007 at 18:55:41:

Are there any major notebuyers still doing simulataneous closings. If this becoming a thing of the past. Who are they.