Finance
In Arizona, a seller who carries back a second mortgage for a buyer is assuming the risk that:
AThe buyer will refinance and pay off the seller's note
BThe buyer may default, forcing the seller to either foreclose or lose their security interest✓ Correct
CThe first lender will accelerate the first mortgage due to the second
DThe buyer's credit score will improve, lowering the interest rate
Explanation
A seller carryback is essentially an unsecured or subordinate loan to the buyer. If the buyer defaults, the seller must either foreclose (taking back a property they've already sold) or lose their security.
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