How ? Partial NOTE On Sale & % Rate?

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Talking to the potential buyer's mortgage broker, supposedly the property might appraise for approx $5K less than what I want for it. (I confirmed, that will probably be the case).

In order to keep the deal on the table, we agreed on $2K off sale price, and I would finance the short fall UP TO $3K to the seller via a note.

I assume, this note will one way or the other be tied to the property . Have to have attorney look at it or draft it. Is that the norm? If not what incentive do they hvae of paying me? Their first mortgag will be through a bank.

Interest? I told them 5%......

THoughts? I am not making any money on that $3K basically, just on the total sale of the property... [ Edited by yosshimura on Date 03/17/2004 ]

Comments(1)

  • KyleGatton19th March, 2004

    I would have a lawyer draft it up and file it with the county. Also there should be a secodary lien on the property tied to the note.

    Good Luck,
    Kyle

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