buying a house sub to, have sellers orgianl closing docs.
on the Lenders Closing Instructions is says:
Loan type: DIRECT ACCESS 5YRS/6 MO LIBOR
does that mean that seller can still take monies out like a home equity line of credit? Hope not.
They do have a second, gosh it may be considered a thrid the second is for 32k, and the first is 160k, but think the first is an 80/20.
I dont need to make three seperate payments do I? ie
130k first franklin
then a thrid on a actual (being cancelled as we speak) home equity line of credit for 32k.
thanks, surely I will learn alot from this deal.
The “Direct Access 5 yr 6 mo Libor” may just be the lender’s name for the program. The most important document you want to review is the “Note” and all the riders. Those will tell you specifically if there are clauses that allow for additional access to principal. I find it unlikely that will be the case on a first mortgage.
If the mortgages are held by two different lenders “Chase”, “Franklin”. then you do need to make two payments unless your subject to contract is a wrap around or AITD, which would stipulate your payments go to the seller (bad idea) and he makes the payments (hopefully).
It is the type of mortgage. 5 year fixed interest rate, then rate fluctuates every 6months according to libor (a source of funds for lenders)