1st Timer For Carry Back
I have an offer on a condo. The buyer recently went thru a divorce and "was screwed". So she needs 100% + closing costs.
She found a HML that will do the 80% at 5 points. She wants me to carry back the rest including costs.
My gut tell me not to do the deal due to the >100% LTV, but I want out from this beast (listed almost 1yr).
Do people have any experience w/ this LTV? How did you deal with it?
Do you use a standard Note/Trust Deed or do you have special language?
What special language (concepts) did you add?
Thanks.
Your buyer has poor credit and no cash. She is going to a HML, meaning she is going to pay ultra high interest making for a high payment. All this translates to high risk.
The question is, "if she stopped paying, would you foreclose and take over the loan, or would you let the foreclosure procede and forfiet your 20% note?"
If you want out badly enough to accept the latter, then go for it. If not, then lower your price and get another buyer.
Quote:
On 2007-02-24 09:47, apexnotes wrote:
You could also write and hold both notes, selling the first position to an investor who specifically buys these types of notes.
I have looked at this and could not find any note buyers that would buy unseasoned notes. Do you have any contacts?
I also have been quoted ~15% discount by the note broker/buyer. Is that the market or do I need to continue shopping?
Thanks for the hints.
If the buyer got "screwed" and has no cash or credit, how do you expect her to be a reliable source of on-time payments?
[addsig]
I have to laugh at the creative solutions offered by the recent graduates of the note seminars. Most assume you have no underlying mortgage and have no need to rid yourself of the monthly alligator. But fiddle with the HP10 long enough and wisdom will appear on the screen.
The bottom line is no note buyer will buy an unseasoned note at 100% LTV by a payee with terrible credit. Period!