Posted by Michael Morrongiello American Note on December 09, 1999 at 22:59:30:
Its not the only time my name has been butchered or mispelled so don’t worry.
If you’re intent on borrowing $80,000.00 and placing a 1st lien against the property then you will probably have to make certain your sellers undertand that the $80,000.00 they are to hold is a subordinate 2nd lien mortgage and would be inferior to the $80,000.00 borrowed against the home.
The best bet would be to see if any mortgage lenders would simply originate that $80K loan for you. WIth your down payment and the sellers willing to take back a $80K 2nd lien obtaining such a mortgage loan shouldn’t be too hard.
As for placing these what sounds like unsophicticated sellers in 2nd l ien positon make CERTAIN you perform on their note and and the other mortgage. I have seen far too many sellers taken advantage of by deal structuring like this where the intent of the property buyer was not very honorable. Don’t ruin it for the rest of us, MAKE THOSE PAYMENTS!!
If you find that you cannot readily obtain an $80K 1st lien mortgage loan then call us as an alternative option would be to have the seller take back (2) two notes. A 1st lien note which we would purchase and convert into immediate cash to them along with the $80K 2nd lien note they are already going to retain.
Best of luck.