Seller Carry Back Law and Legal Definition
Seller carry back refers a home financing method in which the seller of the property carries a second trust deed and note against the property. It is a transaction in which the seller of real property defers collection from the buyer of some portion or all of the price of the real property and takes a promissory note from the buyer for the amount due, secured by a mortgage or deed of trust on the real property.
It is typically used when the buyer can’t afford the down payment or is unable to obtain another loan. One advantage may be that the seller will usually go at or below market interest rate and no closing costs are involved. It benefits the seller by producing an income that is usually higher than the rate banks offer.
