Posted by Soapymac on January 21, 1999 at 06:08:39:
and I knew it would happen some day…
You Lost Me!
I won’t re-write what “MN~Chicago” said, because with the exception of the $30K downpayment, I was thinking the same question. I made the assumption that the $30K was from funds you had available.
270K To Finance
If you use the investor’s 270K to cover this, then write the compensating 270K to the investor, at a 90% LTV, this leaves 45K (350K-315K) available equity.
How do you write a 70K new mortgage on a 45K equity…legally? I understand the substitution process of making the 270K note a second.