So how does it work?

Here's the example. The seller has fully paid his house and is selling for 100,000. The Buyer can only get 80 percent financing but the seller is willing "to carry a 20 percent note." The buyer pays the 80,000, but what does the Seller exactly do in the transaction?

Hopefully I gave a good example!

The seller is agreeing to become the lender for the 2nd mortgage. The sellers attorney will have prepared a note structuring the payment schedule and there will be a 2nd Mortgage signed at closing. The buyer will then make monthly payments to both the 1st mortgage holder and seller.

Hi Cool Guy: We have a CAR form for seller financing which is SFA 10/02, and available in Winforms. It is quite technical, so take your time and learn it or get help within your office, your title or escrow officer, depending on which venue is the escrow holder.

you will be able to find different "seller-carry back" forms online too, as well as at local your association