Legal Question in Real Estate Law in Illinois
Forgivable second mortgage
I would like to structure a real estate purchase as follows:
Purchase price $107,000 (non-owner occupied two-unit)
5% down - $5,350
85% mortgage - $90,950 (7.5%)
10% seller second - $10,700 (10-year balloon, 8.5% interest only)
The seller will sign a release at closing which ''forgives'' the second in six months if six-months-interest-only payments are timely.
What information is included on the HUD? Is the ''forgivable'' information on the HUD?
Asked on 8/11/03, 12:01 pm
2 Answers from Attorneys
Charles Dobra
Charles Wm. Dobra, Ltd.
Re: Forgivable second mortgage
Why don't you hire a real estate attorney, which is my advice to you.
Answered on 8/11/03, 12:38 pm
Mary McDonagh
McDonagh-Faherty Law Offices
Re: Forgivable second mortgage
It would not usually be listed just because your bank may have a problem with that but I would also suggest you get a real estate attorney.
Answered on 8/11/03, 3:33 pm
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