Getting Seller to Subordinate
I want to buy a house for $85,000, giving the seller $75,000 cash and a $10,000 note. I am then going to resell the house to another guy for $100,000 with $5,000 down, an $85,000 first, and have him assume the $10,000 as a second.
Of course, in order to get the seller to agree to allow the $10,000 note to move to second position when I resell the house, I need to put something in my contract with the seller. I was thinking of something like this:
"Seller agrees that if buyer resells the property, seller will allow the note to be assumed and will agree to allow the new buyer to place a new note in first position ahead of seller's note, said new note to be no more than $85,000."
There is probably a much simpler way of putting it, but am I on the right track? I'll take this to a lawyer, of course, but if any of you have any experience with this, or thoughts about it, I would be interested to hear them.
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