Can I Sell 2nd Mortgages.
I do simultaneous closes (owner financing) to sell property faster. My lender takes out the first part of the mortgage, I carry back the second mortgage, which is around 10 - 15K. Question is, I know first mortgages can be sold, but what about seconds?
Also, I provide fixed rates for my buyers, if I sell the note, will that rate change? I wouldn't want to spring that on my buyers. How long should I wait befor I sell and since it is a smaller amount, can I get 100% price for it?
Thanks
You wont get 100% or anything near that. But you can sell it. The interest rates wont change unless they rewrite the contract. Typically if I am buying a second to secure a position, I offer under 50%, but I am usually doing it on preforeclosures.
Good Luck,
Kyle
I agree the companies that purchase seconds that I know of typically want it to be a pretty big amount and they will not give you as much for them. Typically, 50% or lower.
Best of luck!
Sure, lots of 2ds are bought and sold daily.
Typically they have a lower PV than 1sts, but if total LTV is not too high, ratio is no higher than 1:4 of 1st to 2d, credit is OK, property value is provable...there is a market for your 2d.
Way to test market for your 2d is to put it on one of the note sites and see what offers you get.
I buy 2nds all day long, email me with the particulars and I will get you an answer...
We have a source to buy 2nds no matter the seasoning. email me info. Marian
Thanks guys. I'll be following up with you!
Dee
Hi there I would like to help you with this problem but I will be needing more information on the note. Just go to my wedsite at****Must Reach Senior Investor status before posting URL's*** and I will see what I can do.
The sale price of the second TD is dependent on a few factors. What is the interest rate? When is its maturity date? What are the monthly payments? What was the down payment at time of sale? What is the balance due on the lst TD and what is its interest rate, monthly payments and maturity rate. What is the value of the property and oh yes for what did it sell? Do you have a policy of title insurance and a lenders policy on the second TD and note. Is the instrument assignable.
I try on three year or under paper to achieve a yield of about 20% and my discount quote is tied to that yield, I then may lay off the paper into an investors portfolio and his yield is about 12% of course I give full recourse and on any default I pick up the paper myself. I also will then substitute Trustee and conduct the foreclosure sale at my instruction. I keep certain CD's in a trust account to guarantee all this recourse.
I only buy paper in California where they utilize escrows and the Note and Trust Deed forms.
Hope this is helpful.
Cheers Lucius