Posted by Michael Morrongiello on March 04, 2001 at 20:24:49:
Michael:
When you sell the property and take back YOUR seller financing. This mortgage and note would be sold to generate cash proceeds. From these cash proceeds ALL underlying debt including the 1st lien mortgage and the 2nd lien mortgage to the seller would be paid off.
To your success,
Michael Morrongiello
Big question. I’m sure it’s an easy answer. - Posted by Mike M
Posted by Mike M on March 03, 2001 at 16:13:16:
If i buy a property which has an underlying loan which had a due on sale clause. And the Seller gave me a second for some of his equity. Then i turn around and sell the property with owner financing. how would it be structured so that i received my final equity? here are the numbers…
1st 11,000
Sellers 2nd 19,000
My sales price 55,000
buyers down pmt 5,000
my equity 20,000 ???
Re: Big question. I’m sure it’s an easy answer. - Posted by Jon Richards
Posted by Jon Richards on March 06, 2001 at 14:38:41:
Almost always the note buyers will pay off the underlying loan, so that they have a first position loan. This takes care of the problem of the due on sale clause as well.
Jon Richards,
Publisher, NoteWorthy Newsletter