Take back paper??? (loan, second mortgage, financing, loan) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

dgr2009 · 08-25-2009, 09:56 PM

We looked at a home today. Its listed at $500000. The agent said the owner is willing to take back paper up to a $100,000 as a second mortgage. What the heck does this mean? Is it simply owner financing?

fumanchu41 · 08-26-2009, 12:37 AM

Quote:

Originally Posted by dgr2009

We looked at a home today. Its listed at $500000. The agent said the owner is willing to take back paper up to a $100,000 as a second mortgage. What the heck does this mean? Is it simply owner financing?

Yes, it is simply owner financing on a portion of the sales price. The sellers are willing to carry a 2nd mortgage on the home. They will be in second position to your mortgage company or bank. This is usually done to help with financing your purchase since it's really hard these days to get 100% financing ect... Hope this helps.

dgr2009 · 08-26-2009, 08:23 AM

thanks for the reply. Thats what I thought it was but had never heard that phrase.

NJ987654 · 08-26-2009, 03:09 PM

He is doing it so you can get a 400K loan (conforming).