Lender · Cicero, IN · Member since 2008 · 183 posts · 17 votes
We have a performing Note and Deed of Trust for sale. It has a face value of $142,000 and it has monthly payments of $600.00 per month with no balloon. The annual interest rate is 4% annualized.
Queen Creek, AZ · Member since 2014 · 2k+ posts · 1k+ votes
11y
When was the note originated, is it Dodd Frank compliment?
If I run simple calculation for 142k at 4% 360 months I get a payment of $677.93, was the note written for more then 360 months or did you round off the payment? I have to go to 480 months to get the payment to $593.47.
Off hand I wold say the low rate on this is going to hurt your resale price, to a typical note investor, given the low rate, this note is probably worth 55k, but only if it does not have any Dodd Frank issues, the collateral is worth not of 75k+, and it has a decent pay history.
A much better strategy for this note would be to sell the front end payments. You could sell the next 60 payments at 14% for and get $28,340.32. Offer the sale with a renewal option and you will net much more over the life of the loan.
Lender · Cicero, IN · Member since 2008 · 183 posts · 17 votes
11y
Dear Bob,
The Loan was originated by the original holder in November of 2010. The originator sold the property on "Seller Financing to the Borrower. The first payment of $600.85 was due on 12-1-2010 and thereafter. The Note had a hiccup in the payment history for a period of four months. I have the full payment history for someone to review.