purchase money mortgage

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Purchase-Money Mortgage

A mortgage in which the home buyer borrows from the seller instead of, or in addition to, a bank or thrift. Purchase-money mortgages usually are made when the buyer cannot qualify for an ordinary home loan due to lack of credit or income. Alternately, a seller may offer a purchase-money mortgage in a mortgage-takeover agreement, that is, when the sale price of the home is equal to what remains on the seller's own mortgage.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

purchase money mortgage

(1) A mortgage loan used to purchase real estate. It may be seller-financing, institutional lender financing, or any other type,as long as the loan proceeds were used to purchase the property. Some states prohibit lenders from suing borrowers on purchase money mortgages if a foreclosure sale does not result in enough money to pay the debt in full. (2) Sometimes used to refer to a purchase money security interest in personal property.Personal property security interests are sometimes called chattel mortgages, hence the expression purchase money mortgage. (3) In bankruptcy, the debtor may not keep normally exempt assets without paying the creditor if the creditor has a purchase money security interest.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
We estimate that other builders and Realtors added 50 percent to 100 percent to those numbers, yielding--conservatively, we think--a 10 percent share of purchase money mortgages.
Purchase money mortgages offer significant benefits, but they also present additional risks, particularly for the seller, so it's important to plan carefully.
* A purchase money mortgage in the amount of $300,000 on a multifamily apartment building located in Manchester, N.H.
A purchase money mortgage in the amount of $248,000 on a mixed-use building located in North Conway, N.h.
* A purchase money mortgage in the amount of $430,000 on an apartment building located in Dover, NH.
* A purchase money mortgage in the amount of $1,537,500 on a 16,892 s/f office building located in West Depford, New Jersey.
The transaction was structured to deed 320 acres to each of the Hudspeths' two married children and their wives and 160 acres to their unmarried son in exchange for nonnegotiable notes and purchase money mortgages. The deal also included a leaseback to the Hudspeths.
Section 128(b), which currently requires early good faith estimates of Truth in Lending disclosures in purchase money mortgages only, represents an exception to the general requirement that loan-specific Truth in Lending disclosures only need to be provided by consummation of the credit agreement (often at settlement).
2, b) or purchase money mortgages, lease purchase agreements or similar securities (Section 204, par.
ORLANDO - Marilyn Sperling, CEO of the $1 billion Greylock Federal Credit Union, told attendees at the 2015 NACUSO Conference that building strong relationships across all parts of the mortgage loan process is key to increasing market share of purchase money mortgages.
But HERA, recognizing this, as I said, directed us to come up with a regime in which purchase money mortgages and refinance mortgages are treated separately.
A drop in mortgage loan refinancing activity, increased regulation and a sluggish market for purchase money mortgages have combined to make 2014's first quarter discouraging for some credit union lenders.