what does the term "carry back" mean in real estate?

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what does the term "carry back" mean in real estate?

Just Curious

2007-10-01 03:56:37 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate

2 answers

The seller finances all or part of the purchase for you. In other words, the seller becomes a mortgage lender.

2007-10-01 04:00:49 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋

When a loan is made that is not for the full purchase price the seller takes the balance that is needed to fund the full purchase price and creates a second mortgage or contract for the amount that is necessary to fund the entire price of the property. In effect he carries back the money he would have received from a full loan that a current loan does not provide. The borrower will be then paying on the main loan and to the seller on the carry back.

2007-10-01 11:14:55 · answer #2 · answered by newmexicorealestateforms 6 · 0⤊ 1⤋