is it hard and a good idea to work with the buyer and take a second lien position

[Mark Davis]

We are in the midst of negotiation on a house we have in Pottstown PA.

We started at 215K  there was limited interest

dropped to 205K  there was much more interest.

buyer offered 215 with seller assist of 10K (to cover closing)    so, 205 to us

it is va so no real money down on their part

house appraised at 200K (va appraisal (.. realtor is working on getting that bumped up))

lender is balking saying max loan would be 200K

we don't really want to go that low and certainly not with a buyer assist

it has been suggested that WE, the seller get a 2nd position lien to cover the difference and help buyer with the closing.

it was suggested that 10K-12K 2nd position lien to us is something to do

so, questions

1. is this difficult to write?

2. is this difficult to service ... set up payments, tax docs, track amortization

3. if they dont pay us, foreclose?   if it goes thru, do we get the house and assume the existing mortgage

4. if they dont pay the main mortgage, how do we get paid?

5 what would an appropriate percentage and term be