All Forum Posts by: Sarah Montes

@Vijaianand Thirunageswaram

I am looking to, when I find them I will definitely let you know!

@Mark Sewell

Hey Mark, thanks for the kiddos! I have many investors who create their notes on a 75/15/10, so 1st lien at 75% they sell off, they keep the 15% 2nd so that your ultimately getting 100% of your note!

We can set this up for you in the origination part of the transaction.

@Vijaianand Thirunageswaram

If you find this financing out there, please let me know!

Anyone know who will buy non-seasoned seller finance notes?  I have about 15 QM notes that I need sold. 

@Mark Sewell 👍🏼

@Sharon Heironimus CORRECT, do not advertise loan terms, this has to be done with disclaimers added. Also, I agree ... you should not be using a traditional Realtor. Handwritten signs in the front yard is the best marketing! “Owner Finance For Sale”

Thank you Mark!  Yes, we can provide you with an RMLO Underwriting Package.  It’s ok if the buyer has an ITIN Number we can still pull credit just like a SSN.  20% is a great down payment, we can discuss terms of the loan.  Call me anytime, I can assist in putting this deal together for you.

@Jaime Garza Guys you can not do balloons, that is not allowed. I’ve been advising investors as an RMLO and an owner finance specialist to go a different route, you can do a 5 year Arm and get the same effect as a balloon. Call me if you need help setting this up!

@Denise Evans No balloons allowed unless it’s a rural area.

Hello Nathan,  to protect yourself as a lender in an owner finance transaction, you should use an RMLO to disclose the loan terms to your buyer and verify their ability to repay the loan.  The RMLO will provide you an underwriting  package with the following items:

1. STATEMENT OF COMPLIANCE
2. QUALIFIED MORTGAGE REPORT
3. CREDIT REPORT
4. PROOF OF INCOME
5. REQUIRED LOAN DISCLOSURES
6. SUPPORTING UNDERWRITING DOCUMENTS
7. CLOSING DISCLOSURE

This underwriting package will also help you sell your note for top dollar if you ever choose to shop it!

You should also hire a 3rd party servicing company to collect the payments, pay taxes at the end of the year, provide the buyer with escrow statements, and report on their credit bureau.  The fee is very minimal for all they do!

Choose an attorney who has experience with seller finance transactions, and him draw up the promissory note and deed of trust for your closing. 

*** Very important, if it is a WRAP Transaction, you must have your attorney disclose the wrap on specific wrap disclosures to the buyer 7 days prior to your closing date.

As far as closing cost, your buyer should be responsible for the entire closing costs.

We recommend you to collect 1 year's pre-paid insurance, 2 month taxes & ins reserves, and include the monthly servicing fee in the monthly payment amount.

Also, if your buyer speaks another language, it is also important that they sign a translation letter of the documents provided.

I am an owner finance specialist and I am here to help answer any additonal seller finance questions you may have.