2nd Mortgage Zone

The seller wants to buy the house I am, he says, will do a seller held second mortgages. How does it work? You can tell simple.let buy a house for $ 100,000. The Bank is willing to give you a good price for a $ 75,000.00 mortgage. You need to spend $ 10,000.00. It shows a lack of funding $ 15,000.00. The person selling the house, says: "I'm going to cover the deficit with a new loan." It is a supplier back (VTB) to the closing price, you need him $ 100 000 It will consist of 75 000 at the Bank, 10 000 of its own resources and you are his 15 000, which are in the form of a mortgage is usually a VTB mortgage completely open and running at the same time as the first lien (bank loans) and interest rates are slightly higher than the bank that the seller accepts a slightly higher risk. It happens all the time, and as long as the payments fit your budget, there is a way around the house would fetch.