Turning Seller Carry-back Mortgages Into Cash

If you've sold a home and provided owner financing, it's likely you have a seller carry-back mortgage.

It might not be a mortgage, though; it could be a land contract or a trust deed that is secured to the property. Whatever you call the financing instrument, the good news is it can probably be sold for cash.

You can assign the seller carry-back mortgage to an investor at a discount, or you can use the paper, often at full value, in trade. The way trading works is when you make an offer to buy another property, you use the seller carry-back mortgage as part or all of the down payment.

This works especially well when the seller of the property you are buying is offering seller financing. Then, instead of carrying all the paper (financing) secured to one property, your seller can spread out the risk by carrying the financing on another property through your assignment. This option is even more attractive to your seller if the carry-back mortgage has been seasoned, that is the buyer has made payments to you for a while . . . read more about seller carry-back mortgages.

More Articles by Elizabeth Weintraub, click below:

• 10 Ways to Lose Your Home
  
• Selling on a Land Contract
  
• Mendocino Homes

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