I am looking at making an offer of a park. The loan is assumable, however will not allow a second on it. I would like to get the seller to carry-back a portion of the purchase price. I will be putting down 15%.Does anyone who has had a similar situation know how to accomplish this and still meet the terms of the assumable loan?thanks,Lynn
Lynn,Off the cuff, the first will not allow another loan to be ‘secured’ against the property. So maybe there is no security agreement, just a promissory note.
Before you go too far, you should probably spend $250 and hire an attorney licensed in that state to give you some guidance. The last thing you want to do is commit bank fraud, or put your down payment at risk. The note you are assuming has some very rigid provisions, I imagine. You don’t want to violate those, or you could end up with the entire note due in full.
thank you Jim and Frank for your input, I will explore both. Lynn
I second what Frank said. A few years ago, I contracted to buy a commercial property with an assumable loan with just those provisions. Good thing my attorney caught this BEFORE closing. I would have lost my down payment, the property and the seller could still sue me on the unsecured note. YIKES!Sometimes the best deals you do are the ones you don’t.