Posted by Michael Morrongiello on September 27, 2009 at 01:40:22:
In Reply to: How do I sell a note? posted by Rick Shepard on September 24, 2009 at 12:57:26:
Rick:
See if the owner WILL extend you and your repayment terms... you set the term (4 months) too short.If your going to WRAP existing financing that financing must be longer term or self amortizing debt. Your apparently WRAPPED a loan which is now maturing (very dangerous)and you've not only put yourself but also the buyer you sold the home to in harms way.
Because this is a lower price home and also a FLIP type transaction- your $13K Note (now $12,750.00) is not going to get much traction or interest in the marketplace. Howeve with more payment history and seasoning it will.
This is why getting a year to two year extension from the original seller is important. It will allow you to "age" and season the wrap around Note so that it can become far more marketable down the road.
IF the original seller refuses to extend your term, then you will be forced to sell your WRAP Note for whatever the market will bear to take out the $8K you still owe.
Best to your success;
Michael Morrongiello