A West Virginia seller agrees to finance part of the purchase price. This is known as:
Correct Answer
B) Seller financing or a purchase money mortgage
Seller financing occurs when the seller acts as the lender, carrying a mortgage or deed of trust for part of the purchase price. This can help buyers who cannot qualify for full bank financing or need a second mortgage.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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- → In Utah, what is the standard non-judicial foreclosure process under a deed of trust?
- → After a non-judicial foreclosure sale in Utah, does the borrower have a statutory right of redemption?
- → A Utah lender requires private mortgage insurance (PMI) on a conventional loan. Under what condition can the borrower request PMI cancellation under the federal Homeowners Protection Act?
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- → A Utah property has both a first mortgage and a second mortgage. If the first mortgage is foreclosed, what happens to the second mortgage?
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