Newbie Q- Take back mortgage? - Posted by Kellie

Posted by Dave(Mi) on March 30, 1999 at 15:59:25:

$100,000 property for sale seller wants $!0,000 DN. seller will carry ballance(or Take back a mortgage) this means a seller will finance the sale if you sign a promissory note that says you promise to pay a total of $90,000 with payments of $789.82 per Mo. (30 Yr. Amortized at 10% Intrest)and as security for this loan from the seller you need collateral that’s where the mortgage comes in it says(among other things) that if you dont pay on the promissory note as agreed then you will give the house back as collateral. Hope this helps ,hang in there, keep on asking.
Dave(MI)

Newbie Q- Take back mortgage? - Posted by Kellie

Posted by Kellie on March 30, 1999 at 09:23:17:

What does that mean, take back a mortgage? Say a house sells for $X minus a downpayment of $Y and the seller agrees to take a mortgage on the $Y. Does that mean you just create a contract to pay the seller off directly monthly at a certain rate?