Seller Financing 2nd vs Dropping Price (did not appraise)

[David Green]

I am selling a condo and the appraisal came in $8000 short.  

My realtor was suggesting that we drop the price to the appraised value, but I feel like that is leaving money on the table.

I am considering offering seller financing on a second position (Junior) mortgage or perhaps an unsecured loan for the remaining $8000.  

Are there any servicing companies out there that would make sense for an $8000 loan?  Is this going to be a huge headache?  

I spent some time on google and I think I do not have to hire a loan originator (covered under the only one loan per 12-month rule - dodd frank), though not sure.

Do I have to issue monthly statements, annual insurance, report correctly on my taxes?

Would an unsecured note simplify the paperwork?  

This unit is in Illinois if that makes any difference.  

Any advice or direction would be appreciated.  

Thanks

[David Green]

My attorney told me that the buyer has a conventional loan and banks will not allow any financing to come from the seller.  He also shared he has seen many recent deals in the local market come in with lower appraisals and that most buyers and sellers are meeting in the middle.  I will see how these negotiations go.