Blanket Mortgage Creative Real
Estate Financing
Technique #5...
The seller might be willing to sell, no money down and take back a mortgage for the
entire equity of a property.
However, the seller might be afraid that you will walkway from the property before building up a substantial equity, forcing the resale of the property all over again. If this happens, the seller may be fearful of getting the property back in a condition worse
than when it was sold to you.
You can overcome the seller's fears by offering additional collateral with a blanket
mortgage. A blanket mortgage includes more than one property. You can include equity in your home, other property, or even an automobile under the terms of a blanket mortgage.
Caution: The blanket mortgage that the seller will be taking back may be for a term as
long as five or ten years. Since you do not want to tie up your extra property for that period of time, make certain that the mortgage contains terms that will allow you to release your home or other property from the mortgage after you have made payments on time for a period of
6, 12, or
18 months.
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Specific
Situations to
Apply
Technique #5
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The
Property
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Low
Interest
Assumable
Mortgage
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The
Buyer
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Cash
for only Part
of Down
Payment
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No
Cash at All
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Lump
Sum Cash Due
Soon
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Poor
Credit
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Equity
in Real or
Personal
Property
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Dead
Equity
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Cash
Value Life
Insurance
Policy
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The
Seller
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Will
Finance: Wants
Added Security
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Must
Sell
Immediately
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Moving
Out of Area
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Blanket
Mortgage to Refinance
High
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