The seller benefits from the spread between the interest rates of the old and new loans.Agreement: Ensure a clear agreement on who will be responsible for the existing mortgage payments and how any arrears or defaults will be handled.Seller Second Mortgage:Structure: The buyer gets a new first mortgage to pay off the existing loan and a second mortgage held by the seller for the remaining balance.Consideration: This may require refinancing the existing loan, which can be costly and may change the loan terms.I hope this helped.

He declared the proceeds as a dividend to himself, and defaulted on the note to the seller leaving the seller with the recourse to repossess the business which now had no real estate and that’s equipment and inventory was fully mortgaged.Let us know of unique ways you’ve experienced making money in real estate

A person with a 750 credit score who wants an apartment at 50% of their gross is going to default - its just a matter of time.

From the posts, it seems that if my parents transfer the property to a LLC in which each owns a 50% interest, the default federal tax classification would be a partnership if we do not live in a community property state and the property is not located in a community property state?

For most people high debt will eliminate a high credit score (wealthiest excluded).3) FICO takes into account credit obligations that were not satisfied (I.e. are in default).  4) the entire purpose of FICO is to use an algorithm to determine likelihood that the person will pay future debt obligations.5) a good FICO provides the potential stick used to collect moneys owed.  

Does that mean that if he defaults, I can go after his assets such as his personal residence, 401K, bitcoin, etc.?

AS for lawyer contacting you unless they are going to do it on a retainer I cant see someone who is in default paying for this.

By default, the tax loss from the rental can't offset your W-2 income because passive losses can't usually offset non-passive income. 

However, they include "bad boy" carve-outs that trigger full recourse if the borrower commits certain bad acts like fraud or voluntary bankruptcy filing.Abandonment may constitute default: If the GP abandons or surrenders control of the property during foreclosure, it could be considered an unpermitted transfer that violates the loan agreement and triggers the guarantor's full recourse liability for the unpaid loan balance.

For example I know a lot of older apartment buildings are rent stabilized by default.