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.