Posted by Joe Bonanno on February 15, 2001 at 12:22:32:
It’s called subordination. This might allow, among other things, you to pull cash out of the deal with a new first loan. At the very least you would be looking at much faster first loan approval and a much better interest rate.
I confess to being less than 100% sure, but I believe the second you receive from the seller need only contain and clause allowing subordination of seller’s interest.
Search the articles on this site for more information and look at Bronchicks articels at Legalwiz.com.