Hello to all reading this post, I have read that a Performance Mortgage is a good tool to ensure that the mortgagor (seller) follows and adheres to his obligations (paying mainteance, utilitilies or even paying half of the monthly note) in a lease option transaction. My questions are:
a) Is consideration money required to legitimize or bind the Performance Mortgage, if so how much should the investor provide?
Or
Is the only financial aspect of the Performance Mortgage limited to the sellor (mortgagor) pledging the house as collateral?
Any other feedback about the Performance Mortgage would be greatly appreciated.