We have a buyer interested in purchasing a PC. Of property that we own in DE.
They are willing to put down 100,000.00 and pay balance off over the next 20
Years with us holding the mortgage. They also have mentioned ballon payments.
Am concerned about 2 things Can they use this property as collaterial and then if they default would be left with liens on a property that is currently free and clear, and what is a ballon payments.

Hello A:

If you hold the mortgage, YOU are the first lienholder and nobody can be placed ABOVE you. If they get a 2nd mortgage and default, YOU get paid before they do.

A balloon payment is when they make a big payment all at once.

excon