Performance Mortgage Made Simple?
I'm new and looking to get started in the lease-option "business."
I've read many comments about performance mortgages. I understand they act as a lien and guarantee the seller's performance on the lease option.
What I don't understand is what they "say." Do they totally disclose what your deal with the tenant buyer is?
For instance, does it say something like, "Seller agrees to sell house for $300,000.00. Buyer will buy house for $350,000.00. $50,000.00 goes to the investor. So this performance mortgage is for $50,000.00, guaranteeing that the seller will sell for 300K and the investor will receive 50K profit."
I realize that no mortgage is like this, but is this what a performance mortgage is saying in essence?
Please, can someone explain exactly what a performance mortgage says/does simply?
Thanks for any help!
Yes, I would like to know the answer to this as well. I have read about using them and not had any success in the "wording" of the document.
Thanks for help with this one!! :-?
I finally found an example of a performance mortgage.
Go to ****Must Reach Freshman Investor status before posting URL's***
Go to the discussion forum
Scrolling at the top are three "ads". The first one is a FREE sample of a performance mortgage.
I hope this can help others as very few here seem to know anything about performance mortgages.
That would be "REmentors" as the name of the site.
Thank you very much de51.
Alan