Posted by David garcia on February 01, 2002 at 16:23:09:
Most lenders that I work with require all liens to bepaid before approving the loan even liens in the second.
Traditional or creative financing please help!!! - Posted by Todd
Posted by Todd on February 01, 2002 at 15:32:10:
My wife and I are going to sell our condo, that we are currently renting, to my sister-in law. We have a first on it for about 58,000.00 and a second on it for about 8,000.00. We want to sell it for only 64,000.00. Why, because we still want to pay on the second ourselves an use a downpayment of 6000.00 toward our house which is past due. If I’m not mistaken if she gets a mortgage through a traditional lender, they will not want to have a second still held by us. Is that correct? In order for her to pay on the first and we still hold the second, how will we go about this. How does she accumulate equity. We will pay off the second in about 18-24 months.
Re: Traditional or creative financing - Posted by Brent_IL
Posted by Brent_IL on February 02, 2002 at 08:16:51:
The holder of the second will have to agree to subordinate. You could offer to move his mortgage to your new house after you close.
Traditional or creative financing please help!!! - Posted by GL(ON)
Posted by GL(ON) on February 01, 2002 at 16:06:57:
You could ask the second mortgage holder to transfer the mortgage to your other home. Then sell the condo to your sister in law, and take the $6000.
Or if they refuse, sell the condo to your sister in law, have her put on the biggest mortgage she can get, put a new second on your house, and use the money you get to pay off the old second on the condo. But if you pay it off be sure to ask for a discount.
In other words it depends on the second mortgage holder, talk to them about moving the mortgage, if they won’t go for it, then try to pay it off at a discount.
Re: Traditional or creative financing - Posted by Paul_MA
Posted by Paul_MA on February 01, 2002 at 15:55:30:
The lender won’t care about the second mortgage, as long as you subordinate your second mortgage. In other word, you must agree that the bank gets FIRST lein position.
Worst case senario: if the buyer defaults, the bank gets paid first, then you get paid with the remainder.