Hey Everyone!
Me and my father found a deal in our area, and this man is willing to sell it to us for the debt balance and give us about 10% equity in the property. The payment is low and it’s in excellent condition, he recently put 30k into the property, new kitchen… granite countertops etc.
Anyways, it all looked good… but then we listened to an excerpt from a LeGrand course(green FSBO) saying that Credit Lines will always get called due because the bank lost it’s collateral and the borrower can draw more from the credit line and then call bankruptcy.
The second mortgage on this property IS a credit line. I know we would want it closed before we buy it so he can’t borrow any more money. But do any of you have experience with Banks calling Credit Lines due upon transfer of title? If not… how do you avoid the issue?
I was thinking of buying it on Land Contract and just recording a memorandum. What do you think? Thanks.