Hi I'm new to this site so go easy on me! I've got a buyer for my $850K property in WA, but the buyer can only raise $650K. I'm happy, in principal, to go Vendors Finance for the remaining $200K, but don't quite know the risk to me. Has anyone got some adive on the best way to proceed.
The risk is he will default and you will have to take possession action to recover the property.
Given he has already given you $650K this may not be such a bad thing.
Of course if he defaults on the first mortgagee this maybe another matter.
Make sure your Solicitor documents the $200K Vendor Finance by way of registered 2nd mortgage and check the legislation issues in WA to make sure you dont need a Credit License to undertake such a strategy.
Richard Taylor | Australia's leading private lender
Many thanks Qlds007. Does that mean the first mortgagee i. e. a bank will have first call on the property if he defaults and if they only recover their $650K it leaves me with nothing? If so seems a big risk!
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