can someone explain to me if i can only get 80% ltv financed,can the seller take back a second and if they need their money now can they create a second note and sell it to the notebroker,does that make sense?
I’ve been searching on here the past few minutes about seller seconds…
I was also wondering that, plus… Does the seller issue a check to you? Or does he credit the amount as ‘down’ in the financers eyes?
If it is a single family home, depending on your credit and DTI ratio, some lenders will willingly give you an 80% first with a seller second in place.
It is always best to disclose that you have a seller 2nd in place.
As to selling the 2nd to a note buyer, seconds normally receive a heavy discount when being bought, especially when they are being bought at closing with no seasoning. The seller would probably be best to just hang on to the 2nd and take the payments for a while.
More than likely you will refinance to a loan based on the actual value of the home and will pay off the seller.