What if my AFS Seller takes out a second mortgage

[antaynguy]

Hi,

I am just curious, if there is a way that we the buyer can be protected from the seller through AFS going to get a second mortgage out of the property down the road when the the property has been appreciated, without us knowing?

Thanks!

An Tay

 

[Thomas Beyer]

QUOTE (antay @ Dec 18 2009, 04:29 PM) Hi,

I am just curious, if there is a way that we the buyer can be protected from the seller through AFS going to get a second mortgage out of the property down the road when the the property has been appreciated, without us knowing?

Thanks!

An Tay
the AfS is (or should be !!!) registered on title in 2nd position. Thus, any new lender would see it and be in 3rd position. Owner or bank may still do it though. Thus, put a clause in that he cannot.