Seller financing as a second mortgage
I have a potential buyer who is willing to pay the asking price for my house, however they are approved to get $30k short of asking price. Can I give a sellers finance as a second mortgage? I’m not sure if that is doable since a bank is involved. Even if the bank agrees, what will be my hold on the buyer to make sure that they pay it off? Please let me know if you have any suggestions.
Most Popular Reply
Yes. You can. I’ve done it lots of times. Technically it’s has to be disclosed to the lender. Which may or may not want a second
Which goes to your other question. Your security to being paid back is a second lien. It’s not a lot of security as between your second position and the first, there isn’t much equity protecting a default