Is This Type Of Transaction Legal?
Is this type of transaction legal?
An example purchase the property for $100,000 dollars, take an 80% mortgage from a mortgage company, and a 20% mortgage from the seller.
The 20% mortgage from the seller would be paying interests on the full 20%, for one year, and after a year when the whole payment is due; I will only pay 10% which is $10,000 dollars.
That comes out that the property only cost $90,000.
If such a transaction legal.
Hi Cherry Hill, you really got my brain going. Is the seller giving you a personal Loan? for $20,000.? you will pay him 10,000. the end of the first year and he will finance the 10,000?does that mean he will give you the Title Policy and the Deed for you to get the other $80,.000.? There has to be more than that. Please tell us more of the story. I have dealt with many morgtage companies for many years and if I missing something I really would like to know.
Konte