I think you told me that when you buy a property subject to a mortgage, you give the seller a small 2nd mortgage to protect him in case you default on the first. The 2nd gives him an interest in the property. What face amount and terms do you use in the 2nd? Is there a clause in the 2nd that prevents you from paying off the 2nd until the 1st is paid off? Thank you.
Here’s a follow-up question. Does the 2nd have a self-extinguishing provision in it so that when the 1st is paid off the 2nd is too? I would not want to have to track down the seller to get a Satisfaction.