HELP! I need some advice QUICK! I have a buyer for my home, BUT.....

[EricaG]

I live in California. We are doing a for sale by owner. We have a buyer. He is pre- approved for $780K loan, but we are selling our home for $950 K.We thought about selling the property to him, yet remaining on the title as a second. Is it wise to stay as a second on the loan for the remaining $180K so that if payments are not met by the buyer, we can take over the home again? How do we go about doing that? Do we have the buyer pay us the balance plus a reasonable interest rate in a monthly sum in addition to his payments to the bank over the period of ...say 10 years? Are there potential problems with this method? How long could it take to evict them in the event that they default on the deal? Any advice would really be appreciated. We are pretty desperate to get out of our property.

 

[irish223]

If your buyer defaults on the first mortgage, would you have the funds to cover it?