Re: Creating a 2nd Mortage/Note???

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Posted by Tim on May 15, 2004 at 10:15:13:

In Reply to: Creating a 2nd Mortage/Note??? posted by Tim on May 14, 2004 at 16:32:22:

I just realized that seasoning will be a big issue when it comes time to sell the note. Here's a couple of ideas I came up with that might help us.

What about prepaying the note with 6 months payments or better yet for us would be to have that 6 months payments seasoning built into the loan itself (kind of like the way points are used). Would something like that make the note less risky, thus a less of a discounted note?

Or here's another idea. Instead of creating a 2nd note against the property, what if we were to create a wrap around 1st mortgage/note instead. I know that a wrap mortgage is not really a 1st mortgage, but more like a 2nd mortgage. But isn't a wrap around mortgage more secure than a 2nd mortgage?

Could if any these options obtain what I’m trying to accomplish here?

P.S. I'm open to all suggests. As long as it is not like something like just: "No, that's not going to WORK!" If it is not going to work, I would like to know why and how the structure a much better solution.

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