Very Creative Seller Financing!!
Hi,
I have a broker who has been able to find some good rates on a COFI loan. However, his is unable to go above 80% LTV. I was wondering if I could approach the seller to carry back the remaining 20% of the loan. Since I made that decision, I have been trying to find resources on Seller financing but have not been very successful. Does anyone know where I can go to get the right information?
I have no idea what kind of rates should be involved in seller financing of this type. If the seller carries the 2nd mortgage, do I own the property or does he still have an ownership interest? What can I do to meke the deal more attractive to him?
Thank you so much for your advice.
JS 
My suggestion is that you seek hard money or a partner for the other 20% if the seller is not willing to take on 20% of the financing.
If seller carries back a second, you still own the property. There will be a note and associated mortgage or deed of trust (depending on the state) that is recorded as a lien against the property until the note is paid off. The rights of ownership are yours.
I should probably clarify my last post. States are either "Title Theory States" or "Lien Theory States". Colorado is a lien theory state so my previous post is correct, however, in title theory states the law splits the mortgaged property into equitable title which the borrower has and legal title which the lender has. The legal title is conveyed back to the borrower when the debt is paid off.
Along the same subject.....
I am in an agreement to purchase an investment property. It appraises for substantially more than the agreed price with the seller.
I want to buy with little money down. My lender suggested doing an 80/20 LTV with the 20 coming in the form of a seller carr back that they will forgive after closing. Since the home appraises for so much more than I need to give the seller, I can write the contract for the full appraisal amount and the 80% from my lender will cover all my costs and then some.
My question is two fold: Are you familiar with writing owner carry back notes which are to be forgiven? And do you know how the seller would account for the 'forgiven note' from a tax standpoint?
My lawyers and CPA are involved; however, I am just seeing what type of poeple are on these sites. I appreciate you time in reading this and if you have an opinion would welcome it. Thank you.