FinancingCreative_financingEASY
Part of the price for a property is financed by the seller at closing so the buyer can acquire title immediately. What type of financing lien is created?
Correct Answer
B) Purchase-money mortgage
Purchase-money mortgage is correct because the facts match a loan used to finance the buyer's acquisition of the property, often including seller carryback financing. That is the best description of the relationship, right, or legal concept tested here.
Answer Options
A
Wraparound mortgageB
Purchase-money mortgageC
Land contract (contract for deed)D
Lease optionWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Financing Question
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Background Knowledge for Financing
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Real World Application in Financing
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Related Topics & Key Terms
Key Terms:
creative_financingfinancingpurchase_money_mortgageseller_financing
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