Seller Takes A Second
Seller Takes A Second
Sometimes a seller is ready to move on but still wants to feel like they’re getting full value out of their property — even if the buyer doesn’t have a full down payment. That’s when the phrase “seller takes a second” becomes music to your ears.
Here’s how it works: you offer to buy the property at the agreed price, but instead of bringing a big down payment, the seller agrees to carry a second mortgage on the property. The first mortgage is through a traditional lender (or hard money, or VA, or FHA), and the second mortgage is a private note held by the seller.
This is a beautiful thing because the second mortgage can be as creative as you are. Because it is subordinate (Second place) to the first mortgage held by the mortgage company they often don’t care. It could be no interest, interest-only, deferred payments, or even no payments until the balloon is due in five years or just for the first 12 months. Sellers like it because they feel they’re not giving away equity for free, and you like it because you just walked into a property with zero money down.
It’s also a quiet negotiation play that savvy investors use when other buyers walk away. If the seller needs to move fast or has a strong equity position, this technique makes deals happen that others thought were dead in the water.
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65 Old Solomons Island Rd Annapolis, MD 21041
Questions? Call 443-603-1086
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San Diego foreclosures
Phoenix foreclosures
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Los Angeles foreclosures
West Palm Beach foreclosures
San Diego foreclosures
Phoenix foreclosures
Katy foreclosures
65 Old Solomons Island Rd Annapolis, MD 21041
Questions? Call 443-603-1086
65 Old Solomons Island Rd Annapolis, MD 21041
Questions? Call 443-603-1086