hi, a tenant has approached me asking if i'd be willing to sell to him. he is uncertain of his ability to get conventional financing, and has asked whether I'd be willing to carry back a 2nd mortgage that would amount to his downpayment. he's currently inquiring with lenders on his ability to structure a first mortgage. I have about $150k in equity in the property by my estimate, and therefore, would be willing to carry a mortgage in 2nd position for about 30-40k if the terms were favorable. anyone with experience in something similar who could provide me with guideance so that my interests are protected? thanks!
@David Stott as you will be carrying a mortgage on an owner occupied loan you need to follow the new Dodd-Frank rules for mortgages. There are many threads to find info on these new rules with especially Bill Gulley doing a lot of research on the topic a few months ago.
I will PM you a contact in Rochester to help you sort through the new details as it is being practiced in NY.
@Dave Savage thank you Dave! Really appreciate your response and willingness to help. The property in question is in the state of Maryland - just FYI.
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