Newbie wondering something. I’m afraid to carry back a second at 20% in case of foreclosure. I don’t want to be wiped out! SO…
If I buy at least 20% equity, flip, carry back a second(around 20%) for the 80% buyers, and they foreclose, i’m wiped out right since i am the junior lien holder?
How do you guys protect yourself??,
maybe when I buy have it deeded into a land trust, with me at 20% ben. interest, until they refi, or pay down the loan?? Would a lender even consider a deal like that?
Alot of people I know request the 1st lienholder to send them a notice (The second lienholder) of default.
They would then pay the first mortgage holder up to current, and foreclose on the second lien themselves.
Now this i have never seen done, but, it’s a plan. The people i know that do it have NEVER had a problem fortunately!
Sounds reasonable…I just would like to hear from somebody who had to foreclose on their 2nd carry back from seller financing, I don’t want to be wiped out from my deal i’m doing!!!
BTW, I’m using a FNMA form for my note,…anything I should change??