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Seller Seconds - A viable alternative to help your sellers and buyers!

By Sam Thompson

Real Estate Technology with BIC Services, LLC

September 03, 2007 10:19 AM

Seller Seconds. A viable option for creative sellers and buyers!

When the going it's tough, the CREATIVE get going by thinking out of the box!

When cash is an obstacle, we'll do everything we can to get your buyers pre-approved for 100% financing and we'll even allow a seller second. If your sellers will do this, it can really help in reducing PMI and risk to the investors in the secondary market as long as everyone is aware of the risks involved. And, your sellers can help your buyers with a good rate and still get a nice annuity for themselves while having their note recorded to protect themselves too.

A Seller Second Mortgage is a private lien provided by the seller and permitted within the following parameters for conventional conforming purchase mortgage transactions only.

Maximum combined loan to value (CLTV) is 95% unless further restricted by the product selected.
Customer must have 5% of their own funds into the transaction.
The seller second term must be a minimum of 5 years.
First mortgage can be fixed or adjustable.
The seller second must allow prepayment in full, or in part, without a prepayment penalty.
Terms must provide for regular monthly payments sufficient to meet the interest due (no negative amortization).
Secondary financing must have a maturity date equal, or prior, to the first lien date.

But, keep in mind that the buyers are probably low on cash and might not have a good credit history causing them to explore this option so make sure your sellers are making a wise choice for themselves.

Just call us with all of your buyers and we'll do everything we can to get them approved in a program that will get them excited about buying a house!

And, if you have a listing that is not moving OR a buyer that cannot sell their house so they can move here, tell them about our seller-second option. This option might be the ticket to help them sell which sure beats dropping their asking price or continuing to pay on their old mortgage.

We can close loans in all 50 states and would love to help your clients on the other end of your transaction!

Sam Thompson, PHH Mortgage Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

Great Pinehurst Links:

Pinehurst Real Estate - http://www.pinehurstrealestatenc.com/

Pinehurst Luxury Homes - http://www.pinehurstluxuryhomesnc.com/

North Carolina Horse Farms - http://www.southernpineshorsefarmsnc.com/

Fort Bragg Real Estate - http://www.fortbragghomesnc.com/

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