Posted by GMann on June 11, 2006 at 07:31:21:
You could offer a seller 2nd mortgage of 5-10% and probably get a lot more interest in your house. You would be financing 5-10% of some or all of the borrowers down payment. You would get 90-95% of the sales price up front and would collect the payments from the 2nd mortgage. The typical term is a 30 yr with a 3-5 yr. balloon depending on the minimum term the lender on the first mortgage will allow.
If you called a couple of mortgage brokers in the area and told them that you would do a 10% 2nd mortgage, you have a high chance of selling it quickly. That assumes that the property is in good repair.
You have a risk of non-payment on the 2nd mortgage, but you will get the majority of the sales price at closing.