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The vendor take-back mortgage is a type of seller financing that is offered with purchases. With this type of transaction, the seller of the property will offer the funds as a second mortgage. The buyer of a property is going to have to have a loan for the lender and the seller. They will take a first mortgage to cover most of the amount, then they will borrow the remaining amount of money that they need from the seller. The seller will usually have to allow the loan to take a secondary position to the primary mortgage.
Benefits
As a seller, this can be a very beneficial arrangement because it will potentially help you put together a sale quicker. In most cases, this type of mortgage is offered at a low market ratet. This can entice buyers and attract more potential prospects for your property.
Another benefit of this mortgage is that you are going to be able to earn interest on the money that is due to you for the sale of the house. As a seller, if you can offer assistance with financing, you will be one step above the other sellers and will probably sell quicker.
