Posted by Rob Ricker on September 26, 2003 at 21:53:25:
If you’re selling to me, there’s no interest (lol)
Anyone else should pay at least 2 percent higher than their first mortgage’s rate.
creating 2nd mortgage?? - Posted by doody
Posted by doody on September 25, 2003 at 17:47:31:
Let’s say that I have a home I am selling for $100k, and I have a buyer lined up. This buyer can only qualify for $80k. How can I create a note for the remaining $20k, and be sure I get all my money? Also, can this type of Idea work with lease options?
Re: creating 2nd mortgage?? - Posted by mike
Posted by mike on September 25, 2003 at 20:51:43:
You need to have your broker draw up the papers for you holding a seller second mortgage. 80% first and you hold the 20%second on the house, good way to still make some money.
Re: creating 2nd mortgage?? - Posted by Wesley - ATL
Posted by Wesley - ATL on September 26, 2003 at 09:10:08:
Instead of a broker, have your own attorney draw up the papers and charge the borrowers with the attorney’s fees as closing cost.
Another tip, escrow the payments to the first mortgage and property taxes so that the borrower pays you and you then pay the first mortgage. That way you are sure the borrower is paying the first. For example, if they pay you and do not pay the first you could find your second mortgage is worthless. Don’t let it get to that point! By escrowing and paying the first mortgage they will not be able to tell you the first is current when it is not. I learned this one the hard way.
Good Luck
Re: creating 2nd mortgage?? - Posted by doody
Posted by doody on September 26, 2003 at 14:31:37:
So, what if the first gets paid and I don’t? How do I get my money? An other question I forgot to ask in the first post is; How do I structure a 2nd mortgage? Do I charge interest? If so, whats fair?