seller financing

Seller financing

Funding a purchase by a seller's loan to the buyer, the buyer takes full title to the property when the loan is fully repaid.

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seller financing

The practice of a seller of real property holding some or all of the debt necessary to purchase the property. It is widely believed that seller financing is the last resort of borrowers who cannot obtain financing elsewhere,and the last resort of owners who cannot sell their property without offering it to buyers who cannot obtain financing.In reality,many property owners prefer to finance the sale of their properties,thereby earning a better rate of return on their money than if they obtained cash and then attempted to invest that cash in the marketplace.By the same token, many purchasers are able to secure somewhat cheaper mortgage loan interest rates than generally available in the marketplace if a seller will hold the financing.