Finance Q&A

HELP !!! Seller 'carries back' second Mortgage. How ???

Edwards Finance > Mortgage

Q. I'm not so clear on this and would like to hear some imput from anyone who might have been involved or even understands such a transaction. If you want the seller to 'take back' a second mortgage, as money down for example, how will this work? First off all, I suppose you assume that 2nd M an make payments, BUT, do you have to qualify for the bank to allow transfer of this 2nd M. What about the bank financing your first M, what happens when they get wind that you're buying the property with the 2nd on it. OR is the assumption of the second M automatic ?

A. Ordinarily, if the 1st TD is assumable, it is assumable only after credit approval. This approval MAY include verification of assets to determine the availability of funds for a down payment. If some of the down payment is coming from a seller financed (or any other source) 2nd TD, it may affect the buyer's ability to qualify for the assumption of the 1st TD. The lender will look at total buyer equity and also total buyer monthly payments. It is dangerous to generalize, but many seller financed loans are payable interest only with the entire balance due in 5-10 years. Others are payable on a 20-30 year amortizxation schedule, with the remaining balance due in 5-10 years; but, of course, the terms can be anything that is agreeable to the parties.

 


Ask Edwards a Finance Question

 

Other Questions:

Does this mean that you would have to forego tax relief on the Second Mortgage for instance in Uk ?

I live in UK. Can anyone tell me what problems are likely to be encountered if you have a half share in a flat that you don't live in and want to get a flat of your own. Does this mean that you would have to forego tax relief on the Second Mortg...

Looking for a second opinion mortgage on tooth situation.

Looking for a second opinion mortgage on tooth situation. Any information?First, I'd have to look at diagnostic casts to see if the teeth on the right side your mouth have shifted over to the left to close that space. Does the midline between yo...

What is a "Silent second"?

Could someone please explain to me the concept of a "silent second"? I think this is something where the buyer may only put down a 5% down, and the seller carries a "silent second". How does this work, and does this type of deal require PMI? ...

Does any one know of a South Carolina lender that will refinance the property at 90% LTV and I can take out my equity?

I have recently purchased a Forclosed Property for say 40,000 and fixed it up and I am guessing the Appraised value to be 78,000. Does any one know of a South Carolina lender that will refinance the property at 90% LTV and I can take out my eq...

What Is A Mortgage Broker?

What Is A Mortgage BrokerMortgage Broker: An individual person who acts as an associate for either a licensed mortgage broker business or any licensed lender. A licensed mortgage broker is authorized to solicit mortgage loans on behalf of a b...

 

Edwards Finance Menu

Ask a Question
About Us / Me
Contact Me
Privacy Policy

Sitemap

My Favorite Sites

PFBlog
Google Finance
Yahoo Finance
Motley Fool
Nveille's Financial Blog
AllFinanceMatters
Free Money Finance
2MillionBlog
The Terror Finance blog

Q&A Subjects

Capital Gains
Mortgage
Repossess
Debt Consolidate
Loans
Mechanical Engineering
Architectural Engineering
Personal Budget