Selling A Private Mortgage With Improper Amortization

2010 May 18

It never ceases to amaze me at all the funky agreements surrounding many private mortgage notes. What I see most often that make it very difficult to give an accurate mortgage buyer quote is around payment establishing and the resulting amortization issues. Case in point, I had a private mortgage seller wanting a quote on her mortgage note. After getting answers to a few questions, I realized the payment was an arbitrary number and had little to do with a calculated payment based on the other terms of the note. Two things happen when selling a mortgage like this. First, I have to calculate an amortization schedule based on the payment that was agreed upon and 2) Before the mortgage note can be purchased, the mortgage has to match the payment, necessitating a redo of the mortgage documents. So if you want to let your borrower have a payment different from the terms of the mortgage, simply adjust your terms and agreement to match. That way you will make selling a private mortgage much less stressful

Comments are closed.

SEO Powered by Platinum SEO from Techblissonline