Seasoned Loan

Loan that has been on the books for at least a year and has a satisfactory payment record. Mortgage loans that have been on the books for a period longer than a year command a premium over unseasoned loans when sold in the Secondary Mortgage Market.

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A loan on which several payments have been collected.


Example: The seller accepts a second mortgage on the property sold. After he collects 12 months of payments, the loan is considered seasoned and can more easily be sold to a second mortgage investor.

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