my brother has had an offer accepted on a property subject to finance. The bank has said he can have the loan if he gets rid of a personal loan for a boat. He is trying to sell the boat. I have heard of people getting the owners to leave $20000 in there property for a set time period as vendor financing so the sale could proceed. Is this possible and if so how does that effect the bank loan and how does he go about proposing the idea?
Thanks jacquiHi Jacqui,
Most lenders don’t like vendor finance, so your brother would have to find one that is OK with this kind of deal.
There have been a few posts on this subject before. I know Mortgageman, who posts here, has a lender that can do this type of loan.
Regards
AlistairI don’t think vendor finance would help in this situation. The lender would want the personal loan out of the way probably because your brother’s income is not enough to service both loans.
If he went for vendor finance he would be borrowing more (at hgiher rates and shorter terms), so this would worsen the situation.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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Terry this is true unless he has income he is not declaring or can’t declare.
Byronent
Adelaide SA
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