How do you go about creating a 2nd mortgage if you get a deed and the seller will take their money when you sell?
If you have to pay off the original seller when you sell, then his first mortgage goes away. A new mortgage at this point will be in first position.
Not clear on how and why a second mortgage is needed. Perhaps it will all become clear if give us a little more detail about the structure of the deal
Sorry, wrote that very late last night. What I’m wondering is that if you get a house sub2 and you are paying the seller for some of their equity… if they agree to get paid after you sell the house how can you assure them that they will get paid besides just telling them so.
So you want the seller to wait until you sell the property before paying them for their equity. I suppose you could create a second mortgage on the property that you give to the seller which secures their previous equity position. This way if you try to sell the property and not pay them they will have a lien on the property that must be cleared before you can transfer title to the new owner.