April 2, 2009 New York Times Article "House Divided" has some info on how fractional vacation home sellers are structuring shared mortgages. Whether you can do so depends on the lender and, ultimately how much equity you have.
Buyers of fractional interests should take care to ensure that sellers will utilize down payment funds to pay down the shared mortgage and not pocket it unless the seller had that equity in the first place! This can be done through provisions in the co-ownership documents.
Remember that shared mortgages still have joint and several liability (all for one, one for all). Co-ownership documents are a must to ensure precautions are taken to prevent one non-paying co-owner from dragging the rest down with him.
Finally, think EXIT STRATEGY. When you resell your fractional under a shared mortgage, you will want to get your name OFF the shared mortgage and the new buyer ON without the hassle and expense (unnecessary) of refinancing. Most second home loans do not have this flexibility. We can work with lenders to add it to the loan documents.
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