• There is a seller Addendum specifically for Seller Carrybacks.

• Seller fills it out with the exact terms that they would want and the buyer and seller agree and sign.

• The sale is just like a normal sale. The deed records in the buyers name but instead of a Bank the seller becomes the Bank and is the Note holder.

• Escrow prepares all of the documents. Note, deed, etc.

• There is a 3rd party that handles all of the payments. The buyer would pay them and then they would pay the seller. They are a neutral 3rd party that helps make things smoother. There is a fee for their services though.

• The loan term is typically not 30 years like normal mortgages but it can be for any length of time that the Buyer and Seller agree on.

• All terms are negotiable and there are really no “norms” when it comes to seller carries.

• There is no underwriter so the seller must do their own due diligence on the buyer. Credit checks, verify income, employment, etc. Anything that is important to them.

Wrap/Agreement of Sale

• Different than a Seller Carry

• This is used when there is an existing mortgage that can not be paid off with the proceeds or downpayment by the buyer.

• Loan must be assumable. Bank can call the loan due at anytime.

• Buyer does not get the deed to the property

• Very Risky