Question

The sellers have accepted an offer in which they agreed to carry a second trust deed. What contract should be provided to the seller to be sure all the required information is available to them to enter into this type of agreement?

Answer 1

The correct answer is Seller Financing Addendum and Disclosure Statement.

Step-by-step explanation:

Seller financing can replace or supplement loans from a traditional lender. You may be offered financing from the seller when you do not meet the requirements for a bank loan for the total amount, or when you assume a portion of a previous mortgage, taken by the seller and need a loan for the rest. Be sure to let the lender know if you are receiving financing from the seller or other.

For its part, the Disclosure Statement is a document that provides a profile of the corporation, financial information and a summary of the proposed Reorganization Plan. This information is useful for creditors to decide whether to accept or reject the Reorganization Plan.