I used to buy seconds - the three things I cared about were how much equity was behind it, how stable the owners employment was and what discount I could negotiate. Be warned - discounts greater than 50 percent are common.
LTV, protective equity, seasoning,value and location of property,credit, lengthof time at current job,who is holding the first mortgage.
I agree with bobo2. If you take back a small second behind a large first,which seems to be common with RE investors, don't expect to receive large sums of cash from these notes. They are generally considered to be very high risk and many of them end up defaulting. The discounts on seconds are generally very high.
I used to buy seconds - the three things I cared about were how much equity was behind it, how stable the owners employment was and what discount I could negotiate. Be warned - discounts greater than 50 percent are common.
LTV, protective equity, seasoning,value and location of property,credit, lengthof time at current job,who is holding the first mortgage.
I agree with bobo2. If you take back a small second behind a large first,which seems to be common with RE investors, don't expect to receive large sums of cash from these notes. They are generally considered to be very high risk and many of them end up defaulting. The discounts on seconds are generally very high.