What is a seller carry-back? - Posted by Dion

Posted by LJ on January 27, 2002 at 01:14:56:

Hi. I believe it refers to when the seller holds a land contract/note on the property for a percentage of the purchase price. If it is 20%, some banks will accept this as your down payment.
Scenario: seller is an investor who wants to sell the property but doesn’ want all the cash at once, because he does not have enough expenses this year to offset teh capitol gains. He may hold a note for part of the purchase price. Hope this helps

What is a seller carry-back? - Posted by Dion

Posted by Dion on January 27, 2002 at 24:07:47:

Can someone tell me what a seller carry-back is and is something most sellers would participate in? Besides explaining to me what it means could you also give me a comprehensible scenario of one so that I can get a clear picture of this type of financing? To all who respond thank you in advance.