Updated about 10 years ago on . Most recent reply
LLC's and 2nd Position Mortgages against Senior Position
If I personally own a property (I'm on title and I have a conventional mortgage), can I use an LLC that I own to give me a second mortgage against some of the equity in the property?
And then....if the senior position mortgage is paid off by a third-party purchaser of the property (ie: I sell the property), does my 2nd position take 1st priority against the new mortgage originated for the buyer? Or would that scenario never happen because the title company would catch that I had encumbered the title with the 2nd position mortgage and not go through with the sale unless it was paid off along with the first mortgage?
Thanks!