Seller finance rental property

4 Replies


Say a buyer buys the home with seller finance making it the primary loan and he gets another second loan for the down payment is there way where if the buyer cannot pay the loan the person who lets him borrow for the down payment can put the deed under his name and still keep paying the payment to the seller?

Horacio, I'm not familiar with that type of arrangement. But if you wanted the second position lender to be empowered and motivated to make sure the first position loan is getting paid, one idea would be to have the second position lender give you the downpayment NOT in the form of a loan, but in the form of equity instead.  Then they too would be responsible for making sure the first loan is paid as promised and would have the ability to step in and make payments as needed.  

The second lender can only force collection on their loan, not on both loans or the property.

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