Carryback is another way of thinking about a junior lien. It’s another way of thinking about a junior loan in which the owner of the property might be filling in the gap of what is required. So for example, let’s assume that I decided I wanted to buy a property, but I could only get 50% of that property financed for whatever reason, a certain type of property. And I only have 25% of my own money to put in. In a certain circumstance, a seller could put in the other 25%, thereby being the junior loan in between filling that gap, and that would be a seller carryback and make the whole deal work. We can combine the first and second mortgages by calling a piggyback loan to avoid paying mortgage insurance costs and the like too, so certain options might be available there. Mortgage brokers, mortgage bankers, various small loans may all operate on lines of credit also tied to a second
Anatomy of a Second Mortgage
– A foreclosure process could eliminate the junior lienholder’s position in the subject property without commensurate compensation
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
