Posted by John Behle on December 01, 1999 at 16:25:34:
They will purchase seller financed notes - BUT.
They need to be documented properly and serviced properly with an approved servicer for as much as two years. If those criteria are met, then you could sell them to FNMA. The best bet would be to pool them or include them in a pool that a mortgage company already has.
You could also talk a mortgage company into “originating” the seller financing to FNMA standards and documentation - with the seller being the investor. The problem being that most borrowers that could meet those standards would go FNMA and most sellers would prefer cash. Yet, there are sellers out there that might want to avoid cash for tax reasons that later might want to sell the note.
What kind of notes a bank would be interested in buying? And where do you find such notes? For example if I wanted to buy $300,000 worth of such notes for $170,000 cash where should I post my want ad?
Re: What kind of notes a bank would be interested in buying? - Posted by John Behle
Posted by John Behle on November 30, 1999 at 19:39:06:
Few banks buy notes. There are nationwide institutional buyers, but most are not banks. The process of finding notes is more than just placing an ad - especially to find the high discount you mentioned. As Michael mentioned, there are many free articles here to read and learn more. That would be the place to start.