What Is Seller Carry Back And What Are The Drawbacks Of It?
What Is Seller Carry Back And What Are The Drawbacks Of It?
Abstract
In most real estate transactions, the buyers usually acquire finance through a mortgage lender to purchase the property. Sometimes the borrower may not be able to qualify for a mortgage due to credit issues, low down payment, or low income. In a seller’s carry back financing, the seller acts as a lender and provides funds to the buyer. In this type of financing, the seller has the right to foreclose the property. If the buyer is unable, the buyer has theRight to foreclosed the property and take the property back. There may be certain exceptions. The new guidelines make it more difficult for a seller to provide carry back loans. There are certain exceptions applied to the carry back Financing.