i potentially have a deal that i can not figure out how to structure. the property is worth 290,000 and there are 2 loans on the property. the first is for 200,000 and the second is for 60,000. i can by this house for 280,000. what i was thinking was paying the mortgage on the first an having the seller pay the second. that would be the only way i could cash flow the property. is there a way to have the seller sign something to make him pay the second? if anyone has a suggestion it would be greatly appreciated.
It sounds like you are proposing a “subject to” deal. Basically, you get the deed, subject to you taking over the payments for the first mortgage. The second mortgage would still be the responsibility of the seller. You might want to check the subject-to articles and forum.
the problem is eventually the Seller wil stop paying the 2nd and then you have a problem. If you let the 2nd foreclosure, then you will lose the title (or have to bid for it); otherwise, you will have to make the payments to keep it current. You will have very little leverage over the former-owner
I don’t get it. Why would the seller pay second mortgage?
In either case… assuming you plan to rent it out, and if the rent covers only the first mortgage, then why not take over both mortgages and list it?
Just a suggestion - I am still very new to RE investing.