Finance
A Texas home seller who finances part of the purchase with a second lien 'seller carry back' should be aware that:
AThey can deduct the full interest from their taxes
BThe second lien is subordinate to the buyer's first mortgage and faces significant risk in foreclosure✓ Correct
CTREC must approve all seller financing arrangements
DThey are required to use a TREC-promulgated note
Explanation
A seller carry-back second lien is junior to the first mortgage. If the buyer defaults and the first mortgage forecloses, the second lien holder receives proceeds only after the first lien is satisfied. Insufficient proceeds may result in total loss of the second lien.
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