BD,
You've lost me.
Assuming the purchaser can come up with $500,000 cash without using this property as security, the vendor already has a $500,000 loan, so if they get a second mortgage for another $500,000 this will make it 100% LVR.
This $500,000 is then on-lent to the purchaser who will take over the property. The title would still have to be in the vendor's name as they have a $1mil debt. So the purchaser pays back the $500,000. The vendor pays this back to the bank. Title can the transfer when the purchaser comes up with $500,000 more?
Doesn't make sense to me. Am I missing something?
You've lost me.
Assuming the purchaser can come up with $500,000 cash without using this property as security, the vendor already has a $500,000 loan, so if they get a second mortgage for another $500,000 this will make it 100% LVR.
This $500,000 is then on-lent to the purchaser who will take over the property. The title would still have to be in the vendor's name as they have a $1mil debt. So the purchaser pays back the $500,000. The vendor pays this back to the bank. Title can the transfer when the purchaser comes up with $500,000 more?
Doesn't make sense to me. Am I missing something?