Do banks allow Seller Carry Backs?
No because title is being transfered without the note being paid in full. Most lenders have a “due on sale” clause in the note which states, “any sale, transfer, conveyance of title requires the note be paid in full.” The only type of conveyance most lenders will allow a land contract. Q: What is the difference between a land contract and a seller carryback? A1: A true seller carry back allows for legal title to be conveyed to a third part or trustee who holds as security for the beneficiary (seller). In case of foreclosure, standard trust deed foreclosure procedures are used. In other words, the buyer receives a Deed of Trust which gives the borrower/buyer all ownership rights while the lender has an equitable interest in the property. A true seller carry back allows for fee simple ownership, which gives the buyer/borrower the right to sell, convey just as a borrower would have using a traditional lender. A2: A Land Contract also known as an Agreement for Sale is when the seller gives
