Posted by Jim IL on December 10, 2000 at 20:03:28:
I won’t address your first scenario, because high end homes are not my specialty.
But, with the second one, why not do it “Subject to”?
You can take the home “subject to” the existing financing, both loans.
But, still have the seller pay you for the second loan, for a period of time you negotiate.
Write a note for the amount they will pay and for how long.
If the sellers has any other assets, use them to secure the note.
If not, think about the note anyway, even though it will be unsecured, you will have documentation to go after them if they do not pay.
This way you own the home, get all the tax advantages of ownership, and can sell it however you wish.
IF the seller will not go for this, then just do the L/O, as you said, but record a performance mortgage so the seller is obligated to make the payments on the 2nd.