Thursday, February 09, 2006

Creative Finance

Many people (REALTORS and mortgage brokers included) do not understand exactly what creative finance is therefore often in their mind it becomes wrong or illegal. Well, there could be nothing further from the truth. If you cannot get a job done the traditional method, what do you do? Create an alternative solution, and that is all Creative Finance is. "Seller Held Seconds" for example are legal and are recognized by every traditional mortgage lender in the country! That is why they use acronyms like LTV (Loan to value) and CLTV (Combined loan to value). Why have a CLTV if you as a mortgage lender did not recognize the need for two mortgage notes to be combined to make a deal work? They become illegal when the Seller has no intention of collecting on the Seller Held Second Mortgage. Seller Held Second Mortgages are even marketable!! How many times (on your personal mortgage) has the lender you borrowed the money from, contacted you and said your note had been sold...? They sell a large percentage of mortgage notes on the "secondary market" You can sell your notes there as well! Yes, you can even do simultaneous close and get paid for you Seller Held Second right at the closing table... And yes I buy "Seller held notes", look me up at I would love to make you a CASH offer to buy your note...


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