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Real Estate,

Feb. 27, 2024

Seller carry-back financing may be making a comeback

Seller carry-back financing can be risky and potentially illegal, especially if it is not disclosed to the existing lender or if it violates the due-on-sale clause.

Deb Graceffa

Graceffa mediates civil and real estate disputes across a wide spectrum of parties and issues. Prior to practicing law, she was a residential and commercial real estate broker.


Propelled by high-interest rates and a low inventory of for-sale houses, realtors are noodling the idea of seller carry-back financing. While it could be a good-in-theory marketing strategy, seller carry-back financing can run afoul of existing loan obligations - potentially putting the realtor, buyer, and seller in harm's way.

Decreasing mortgage rates have had a minimal impact on home sales ...

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