Loan approval , seller financing

1 Reply

Since you mention 35k I'll assume he has 20k to put down. First thing they should check is will the first lender be ok with it. Then you should certainly make yours shorter term and make sure to make your note default if they default on the first, even if yours is current. Of course you would expect a borrower to default on the second before the first but the second will get wiped out by a foreclosure on the first so its imperative the second forecloses first or all is lost.

But before anything the first thing you should consider is if it is actually worth it for you to sell instead of rent. Will the payment on that mortgage you'll be carrying be better than the rent you are currently collecting? Especially since you will no longer own it.