PARTIAL
on
Mortgages,
Settlements & Annuities,
Lottery Winnings,
and
Business Notes

A partial is the purchase of a portion of an income
stream's remaining payments, the purchase
of a portion of a specific payment, or any
combination of the two.

Beneficial Brokers, with the financial assistance from
Charter Financial, can purchase a partial on:

Mortgage notes

A note that is not "seasoned" (the number of monthly
payments received is low), has a small or no down pay-
ment, or a note in which the payer has a poor credit score
may be purchased as a partial.  In this case, ONLY
a portion of the note would be purchased.
 
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Here is an example of a partial:

Sale price is $50,000
Down payment is $2,500 (Charter Financial usually
requires at least 10%)
Original note balance is $47,500
Payer's credit score is POOR
Seasoning is ONLY 2 months
Appraised property value is $50,000
Term of mortgage is 360 months
Interest rate is 10%
Remaining payments are 358

Charter Financial may offer to purchase the next 200
monthly payments.  If and when all of the payments
are made as scheduled, then the note would revert
back to the seller following the 200th
payment.
 
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Note sellers do not know that they can sell just a
portion of their future payments.  Charter Financial
also can purchase a portion of the monthly payment
as well.  For example, if the monthly payment on a
note is $1,000, then an offer could be made to pur-
chase $200, $500, $700, etc. of this monthly payment.

A partial can be applied to a settlement and an annuity.
The annuitant / beneficiary (the person receiving the
monthly payments) receives a combination of pay-
ments such as monthly, semi-annual, annual, and
lump sum payments.
Charter Financial can purchase a number of payments
or any portion of any remaining payment.

For lottery winnings, the same process applies.  Charter
Financial can purchase any portion of any future pay-
ment as well as a number of payments.
Since lottery winnings can be substantially large, most
of these purchases are partials.

For business notes and because of the risk associated
with them, Charter Financial purchases most of the
business notes as partials.
For example, if a business note on a restaurant has a
balance of $95,000, then Charter Financial only may
have $20,000 in assets that could be sold in the event
of a foreclosure.

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