Escrow & Title

An Alaska seller agrees to carry back a second mortgage to help the buyer qualify for financing. This is described on the closing statement as:

AA seller concession
BA purchase money second mortgage — a credit to the buyer and a debit to the seller✓ Correct
CSeller financing that is shown as a credit to both parties
DA buyer's down payment

Explanation

A seller carryback (second mortgage) is shown on the settlement statement as a credit to the buyer (reducing the cash needed to close) and as a debit to the seller (reducing the net proceeds, since the seller is effectively lending part of the purchase price instead of receiving cash for it).

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