What is your Seller-Held or Private Mortgage worth?

This depends on several factors:

The interest rate on your mortgage
Whether it is current or not
If it is a first or second mortgage
The size of the mortgage to the value of the property (Loan to Value)
The credit report of the borrower
How many payments you have received (Is the mortgage “aged”)
The type of property

Value Increased	Value Decreased
Equity position of 20% or more	Limited equity/Small down payments
1-10 year maturities, or longer term amortization with balloon	Long term fully amortizing obligations (no balloons)
Good borrower credit	Bad borrower credit
Seasoned note with satisfactory payment history	Unseasoned note or simultaneous closing
Market interest rate for risk involved	Below Market interest rate for risk involved
Late charge provision in note	No late charge provision on the note
Due on sale/right to approve Assumptor clause	No due on sale or Assumption/Approval right
Financial statement on borrower	No Financial statement on borrower
First mortgage or large second mortgage relative to first	Large amount of debt senior to subject debt (on junior liens only)
Step rates which increase interest rate over time (not usual)	Fixed rate note
Timber cutting clause on acreage properties	No timber cutting clause on acreage properties
Flood insurance required and maintained if property is in flood zone	Property in a flood zone without flood insurance
Professional note collection by third party	Seller collects own payments
Cross default clause in junior liens (default on first mortgage is grounds to default the second, even if current)	No cross default clause in junior liens (default on first mortgage can mean second is wiped out and holder of second has no right to default the second, if it is current)
Credit report on borrower available and up to date	No credit report on borrower and no right to pull one
Reasonable sized mortgage compared to the property value	Small size note or contract
Well written and structured note and Deed Release provisions	Badly written note
Title insurance available and no exclusions	No title insurance
	Subordination clause that could force the note into lower priority