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What is seller carry back? |
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A seller carry back is, in essence, a second mortgage. However, it is payable to the seller of a house instead of the bank.
Here's how it works:
A buyer wants to purchase a house, but doesn't have the down payment that they need to qualify for the mortgage. So, a seller may offer to hold a note in the amount that they need. For instance, if you are selling your house for $100,000 and the buyer only qualifies for $85,000, you may hold a "carry back" for $15,000. The buyers will then make payments to you and the bank until they refinance and pay you off.
First answer by ID1166033305. Last edit by ID1166033305. Question popularity: 27 [recommend question]
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