Vendor Takeback Mortgage

[Raul]

Hello,

My name is Raul, I am new REIN member and I will be attending the Quickstart program in 3 weeks...I am so excited!!!yeah!!!!!!!!!!

I have a question...........
Vendor Takeback Mortgage means:
A mortgage that a vendor of real property takes from the purchaser, usually as part payment of the purchase price for that property.

Can you explain in plain english what is Vendor Takeback Mortgage? if you want to use numbers that will be better.

Thanks in advance,

Raul UB

 

[thejules]

Hi Raul,
Think of a Vendor take back mortgage just as a regular bank would have a mortgage on the property. The owner would have a mortgage registered on title just like the bank would. The owner would receive payments just like the bank does.

The really neat part is that you can negociate the terms, interest rate, and not have to put up that additional financing.

A VTB First is the best & a VTB Second mortgage is okay too. Does that help?