All Topics / Finance / 80% finance, vendor leaving 20% in

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  • Profile photo of bbinvestbbinvest
    Participant
    @bbinvest
    Join Date: 2003
    Post Count: 8
    March 18, 2011 - 7:41 am

    Hi Everyone,

    Got a deal on the table where the seller has agreed to leave 20% in as a second mortgage (known as second mortgage carry-back).

    I need to find a lender who will do an 80% lend on this deal. My mortgage broker has a couple of options on the go, but I am on a timeframe with this deal, so any tips on a lender to try would be gratefully received.

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196
    March 18, 2011 - 11:35 pm

    Hi bb

    We bought quite a number of properties this way prior to the GFC and the new NCCP Act 2009.  Just like your transaction, this week a seller offered to carry back 20%.

    Over the last month or so I'd heard that lenders had been "lightening up" so I thought I'd give it a try.  I spoke with two of the most respected brokers from this forum and another forum, to see if it would "fly" and, in short, it still seems to be a non starter.

    Don't get me wrong, we still buy with carry backs, we just have to do it another way.  I won't put that "other way" up here but feel free to call.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

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