Seller financing collateral

What is reasonable to offer as collateral in a seller finance deal?

Assume the park is worth $2M. The buyer will get $750,000 from the bank and the seller agrees to carry the other $750,000 note. (Using a 75% LTV for simplicity) The bank gets 1st lien, the seller gets second lien.

In the event of a foreclosure the bank sells the property at market value and distributes the proceeds accordingly. How much above and beyond the second lien should a buyer offer the seller for security? Assume buyer has a great track record in the MHP business.

Thanks in advance.

None–seller can foreclose also and take over first loan. I always said if seller thinks their park is worth $2mill and they recv’d 25% cash down they should be happy to get it back. Their risk is buyer neglect during their ownership–do inspects and notice of any defaults

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