Posted on: 15th Jul, 2011 11:54 am
We are selling a commerical bldg for less than the balance owed. The balance is being added to a residential property owned by my relative in a second position. If we are slow in making the payment on this second is it reported on the relative's credit report?
If they did not sign any promissory notes, then it would not be on their credit. If you are slow paying and default, the 2nd can foreclose and buy out the 1st mortgage.
that's a question best asked of the lender in question. it appears, though, that they'll be granting a typical second mortgage to that borrower; hence, that'd typically be reported.
