Seller Second Mortgage
ROBERT BRUSS: Unrecorded silent second mortgages have downside
Dear Bob: We are having great difficulty selling our rural house. It has been listed for sale about eight months and we've had only one offer.
The buyer will obtain a 70% first mortgage, pay us 5% down payment and give us a 25% second mortgage. However, this is to be an unrecorded "silent second" mortgage. The Realtor says the idea is to make the mortgage company think the buyer is paying a 30% down payment. He says it is done all the time, especially with difficult properties like ours.
What is your advice? -- Vickie V.
Dear Vickie: An unrecorded silent second mortgage is a fraud on the mortgage lender. I know it goes on, but lenders rarely prosecute the borrower or seller.
However, an unrecorded silent second mortgage is dangerous for you.
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Land Transactions
Included: deeds on file at Catawba County Courthouse for listed dates and values equal to or more than $75,000 and parcels of 1 acre or more. Order of listing: seller, property description, location, township, buyer, buyer price, courthouse recording date.
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Anita and Charles Greene Jr., Parcels 37221276778 and 372212860278; MCT; to Exchange BTS No. 5 Inc.; $960,000/S; April 17.
Christopher and Debra Finley, Lot 23 in Rock Barn Club of Golf, Lyle Creek Avenue Extension Phase III; CLT; to Loren Cain and Mary LePage; $470,000/S; April 18.