We pay top dollar for owner financed notes!
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CREDIT MEMO OUTLINE
When submitting a portfolio for resale a Credit Memo is very useful in
condensing the most important information and allowing the purchaser to
review the overall picture of the portfolio. The following information
that should be included in a Credit Memo:
1. How and why the information was originated.
In this section you need to provide an overview of the purpose of the
loan, i.e. whether they are Home Improvement Loans, Builder Financing,
Land Seller or Equity Loans. This will give the buyer information on the
origination.
2. Collateral Information
In your Credit Memo presentation, indicating collateral information is
very helpful. Here you will explain the type of collateral that will secure
your loans. For example you would need to indicate if the loans were single
family residences, commercial land, condominiums or raw land. You will
also need to describe the location and area. You will need to describe
the location and area. You will need to indicate the property use, of
it is recreational or residential and the concentration of the housing.
The concentration explains what percentage is built out in the development
or area. You should also indicate if the area is urban or country.
3. Seasoning/Payment History
You should indicate in this area how the loans have paid. Usually indicating
the history over the last 12 months period. By describing the history
as 0/30 or 2/30 would indicate how many months the loan was delinquent
by 30 days.
4. Credit Rating
In today’s industry, there are two ways loans are rated. The first
way is based on the customer’s Credit Bureau score. These are known
as FICO (Fair Isaac) or Beacon scores. These risk scores are based on
certain variables, which would indicate whether a customer would repay
his loan. The minimum credit score is somewhere around 625 to be considered
“good”. The higher the number, the less risk of a customer defaulting.
The second way is grading the loans in a portfolio using an A,B,C and
D rating system.
Colonial Funding Group, Nationwide Note Buyers!
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Testimonials
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"Although I have had a lot
of experiences with many people buying notes, Colonial is the only
company I would deal with today."
--dwayne m., texas
develops 1000 lots/yr
"I shopped hard on the net
for a buyer for my note. Colonial earned my business by being responsive
and knowing what they were doing - all at the best price."
--jerry t., colorado
Let us show you what all the fuss
is about - top dollar, no-hassle quotes from Colonial, a nationwide note buyer!
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Free Book!
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| Streetwise Seller Financing,
the new book by W. Eddie Speed is now available. This is a complete
guide to owner financing, walking you through everything from underwriting
and creating the note to legal and servicing issues. This 96 page
manual is available for purchase
or you may download
a free copy here! |
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| Contact us today for your free
quote! |
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