Legal Question in Real Estate Law in Illinois

Forgivable second mortgage

I would like to structure a real estate purchase as follows:

Purchase price $107,000 (non-owner occupied two-unit)

5% down - $5,350

85% mortgage - $90,950 (7.5%)

10% seller second - $10,700 (10-year balloon, 8.5% interest only)

The seller will sign a release at closing which ''forgives'' the second in six months if six-months-interest-only payments are timely.

What information is included on the HUD? Is the ''forgivable'' information on the HUD?


Asked on 8/11/03, 12:01 pm

2 Answers from Attorneys
Charles Dobra Charles Wm. Dobra, Ltd.

Re: Forgivable second mortgage

Why don't you hire a real estate attorney, which is my advice to you.

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Answered on 8/11/03, 12:38 pm
Mary McDonagh McDonagh-Faherty Law Offices

Re: Forgivable second mortgage

It would not usually be listed just because your bank may have a problem with that but I would also suggest you get a real estate attorney.

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Answered on 8/11/03, 3:33 pm


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