Basics Of A Person Issueing A Mortgaege
HI there!! Ok I am selling a property that I own OUTRIGHT I GIVE THE BUYERS 106% MORTGAGE THEY HAVE FAIR CREDT can i sell the mortgage quickly? CAN I SPLIT UP THE MORTGAGES?
WHATS BEST THANKS PAUL!!
Paul, you can structure the mortgage in such a way that 106% of it DOES NOT EXCEED the actual appraised value of the property, which would mean you selling it for less than appraised value.
Having said that, a note buyer will purchase that note at closing, depending on how credit looks and how much can be documented in terms of ability to pay on the note, but the figure from which the discount will be based is normally either the sale price or appraised value, whichever is LESS (in this case, the sales price).
What is the purpose of the 106% mortgage? To give the buyer cash at close?
Yes, you can take as low as a 5% down payment, and split up the balance however you like, but the note buyer will want to see you retaining the second lien PAST close, while you sell the first lien to the buyer at closing.
Please advise, thanks, Dave
Appraised value is 169K SAME AS SALES PRICE ;
IF I GET 7% ON 2 YEAR ARM for principle balance of 169K WILL a note buyer buy it at what discount? The people have fair to good credit,,,,,,IF THEY GET THEIR OWN MORTGAGE I GET 169K LESS 9K IN CLOSING COSTS NET 160K THATS SOUNDS UNBEATABLE! WHY WOULD I EVER GIVE SOMEONE A MORTGAGE SURLEY ILL NET LESS PLEASE REPLY!
PAUL
gmoney I,dont see how you will attract investors @ 7% we use 10-14% depending on length of loan. To get started I went to wealthy uncle an talked to www.him.My uncle was not interested but had three friends that were ,bingo 475,000k. Then I put an add in the major paper in my area 10-14% secured by first position 75%LTV an got another 8 calls and now have well over 1.2 M working capital.Another thing I do is profit splits 70-30 with my dad and girlfriend.Hope that helps a little it works for me :evil:
I agree with the previous poster, offering 7% will not attract too many.
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