Credit, Credit, Credit

Credit, Credit, Credit

Even though it is “Seller Financing”, credit is still important. But it is important only if and when you decide that you want to sell your Trust Deed or Mortgage. If you NEVER want to sell, then move on, you don’t need to read this post.

The biggest “deal breaker” in selling your mortgage or Trust Deed is Credit. Depending on the mortgage that you wish to sell, an investor is looking for a credit rating of 625/650 or higher. If the payor of your mortgage does not meet these criteria, you will most likely not be able to sell your mortgage.

One of the primary questions in the beginning of the process should be; What is the payor’s credit like? If it is not, then move on to the next note broker because that is one of the most important questions he/she should be asking you. If you don’t know the answer to that question, then ask your payor. If they cannot answer, ask them to pull their credit. It is easily explained that you need/want the money from the mortgage and they should understand. If not, they are most likely hiding bad credit.

Don’t wait until it is too late. If you get to the point in the process where a buyer is willing to purchase your mortgage for an agreeable amount to you, they will then look at the property appraisal and the payors credit. This is the point things fall apart because the credit is bad. Don’t wait for that disappointment to happen.