Seller financing lien

[John Hill]

I’m structuring a seller financing deal and I have a question.

I’m the buyer in this deal. I’m using a title company to close and a servicing company for the servicing of this loan.

Question, what if during the life of the contract my seller defaults on a personal loan and that lender attempts to attach a lien to the property that he has seller financed with me.

Questions that come to mind (some are elementary but I don’t want anything left to assumptions).

1. Can a lender that he has a private financial relationship with, attach to the home that he and I will have financed?

2. Can I protect against this?

3. Does anyone have any experience with this?

4. Of this does happen, what is my recourse?

If there is anything else regarding this topic you can shed perspective on, please share!!

Thank you BP :)

John