It's also known as a wraparound mortgage and is typically used when a buyer cannot qualify for his or her own mortgage.
The main risk to the buyer is that the buyer can put a lot of money in the house and then lose it when the mortgage company finds out about the sale, calls in the loan, then forecloses when the buyer can't come up with the money and can't qualify for refinance.
Or you may pay into the house for many years without incident and then, when you try to sell or refinance, you find out there was a glitch somewhere and you don't really own it.
There may be other risks to the buyer. You would have to do your own research.
Whose idea was this in the first place and why are you even considering it?
- The right of the people
- to keep and bear arms,
- shall not be infringed.