Seller Financing for a Low Appraisal

[Marcell Z.]

Is it possible to use seller financing as a 2nd mortgage to make up for an appraisal coming in below a buyers offer price?

Example:
$250,000 offer received from a buyer
Appraisal comes in at $200,000
Buyer cannot get loan for more than $200,000

Can I have the buyer sign a promissory note/2nd Trust Deed for the $50,000 difference from their purchase offer and the appraised value of the home since the 1st mortgage lender will not lend any higher than the appraised amount?