Do I Want To Hold A Second?
I have a recently completed rehab that I've had a hard time moving, I have a buyer but he only qualifies for 75%. He wants me to hold a large 2nd mortgage for him. Do I want to hold a 2nd for the buyer - I really need my cash back? Ideas, options, advice? please
You can always try to sell the note. It will be discounted but you will get cash for it.
I would evaluate why the property has been hard to move...this will help you decide if this guy is your only option. If he is, I would rather take a second and sell the note whether than settle for nothing or rack up more in holding costs.
Good Luck
I'm not sure why I haven't had all that much interest, I was hoping it was just because of the holidays and all. According to local stats this is typically the worst time of the year to ****Must Reach Freshman Investor status before posting URL's***'m 15k under appraisal in a great neighborhood.
People always say Dec and Jan are a bad time . I think you might want to reevaluate your advertising, and who is doing the financing. Are you going off of the sale price or the appraised value. If the property is in Florida, There are several banks that have unlimited seller credit.(the best thing that happened in the last few years) You may be able to get a higher loan amount if you are using the appraised value. And using a seller credit instead of a concession or a second mtg.
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If I hold a second mortgage on some property and want to sell the note, is there usually a seasoning time first? What about the discount. What do I expect for that?
The note buyer risk of course is the mortgagors default. I would not give any value to any part of the note that was over 70 ltv depending on the location and condition of the subject property. I dont think that would be uncommon.