Seller Carry 2nd position

[Khizer Husain]

I am doing some commercial deals and the seller will be carrying about 5% in 2nd position, is there any risk by not telling the bank or lender about this? Some lenders have various rules and it complicates deals. I am considering not 

Seller would be OK to take the lien after the deal is closed. Please inform and guide 

Thank you

[Derek Dombeck]

This is called mortgage fraud. Don't do it. It may take more work, but find a lender that will accept the deal.