Posted by Brent_IL on June 20, 2003 at 22:59:23:
A second is a mortgage that is recorded after the first mortgage that is recorded on a property. The term is also carelessly, but commonly used to refer to any junior loan recorded after the first.
In your case, the 5% down payment loan would be a seller-financed “second” because it will be recorded after the buyer?s loan for 90% of the purchase price for which they have been approved.
Second mortgages are complex. If you give the buyers half of the down payment, let a good real estate attorney that you have retained for the purpose take care of the paperwork.
The creonline.com forum called “Cash Flow,” is dedicated to buying and selling notes, including seconds. Lot?s of info in the archives. Try a search for ?second mortgage,? ?seller carry back,? and the like.
help seller with fsbo advice please - Posted by kello
Posted by kello on June 20, 2003 at 22:00:14:
I have a very interested party to buy my house. They are approved already but need a 10% down payment and they only have half of that. Is there any kind of option I can offer them. I can’t finance the whole thing but probably could the other half of the down. Is that an option?
Re: help seller with fsbo advice please - Posted by Brent_IL
Posted by Brent_IL on June 20, 2003 at 22:08:08:
If you don’t want to get involved with seconds, there are gifting programs that may help.
Nehemiah is one. Neighborhood Gold is another. There are a few more. Do a Google search. The archives on-site also have much information.
Re: help seller with fsbo advice please - Posted by kello
Posted by kello on June 20, 2003 at 22:32:17:
what is involved in a second? I’m very new at this!