Second Mortgage Secure?
Howdy, I have a potential buyer for one of my houses. He has a few credit problems, so he can't get a great loan. He says he can get a 65% loan if I'll carry the second, $60,000 for a year, no interest, no payment, balloon. I don't have a problem with his credit, but he is applying to my company for a job and is currently self-employed. I am not sure I want to hire him. I've been told he starts jobs and doesn't always finish them. Just heresay at this point and I'll look further into it.
That aside, if he defaults on the first and is foreclosed on, is my second totally unsecured? Would I have to take out the first in order to secure my second in a foreclosure?
Any experiences would be appreciated.
Thanks,
Terry
Your second is considered a secured note and yes you may need to keep the first current in order to protect your position.
Thank you for the reply. Think I'll check out other options for him.
Thanks,
Terry