VTB Mortgage

Hi All,
Just an hour ago, I reached an agreement on price for a lot that I am selling. I am willing to offer a VTB for the lot. My question is this, under the proposed agreement this would be a second mortgage (I'm assuming I have a second position) if he fails. Is this normal? Any advise would be most welcome.

Hi Colin
You need to make sure your lawyer does up the paperwork for a proper 2nd mortgage for the buyer to sign at closing. Your lawyer will then register your 2nd mortgage interest on title.

Keith Uthe
REIA

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It seems to me that when you offer VTB in order to sell a property, the purchaser would need to qualify for the first mortgage.
My question is this, are there still lenders out there that allow this? I find many of the traditional lenders don't like the idea of VTB.
I just recently accepted an offer on 2 props and was willing to do a partial VTB for downpayment but the prospective purchaser could not get it done with his lender.

Looking forward to your answers.

Yes a lender has to approve a second and some do it and some do not. Depends on deal, VRB, asset type, asset size, location, rents, upgrade status and operator