Will a bank do a conventional loan on less than full home ownership?

[Sean Dezoysa]

Hi, if I sell a house on owner financing with a balloon, but the homeowner owns just 90-95% of the house (investor keeps the rest), will the bank have no problems loaning against the homeowner's equity share, or will this cause big complications?

[Ellis San Jose]

Traditional banks would not feel comfortable that in order to enforce their debt, they could only foreclose on 90%-95% of a house & then have to sue for the other percentage ownership.