Finance
What is 'seller financing' (owner carry-back)?
AWhen the seller's lender finances both the buyer's and seller's next purchase
BWhen the seller acts as the lender, allowing the buyer to make payments directly to the seller✓ Correct
CWhen the seller pays part of the buyer's closing costs
DWhen the seller deposits funds into escrow to guarantee the loan
Explanation
Seller financing (owner financing or carryback) occurs when the seller acts as the lender. Instead of using a bank, the buyer makes payments directly to the seller. This can help buyers who don't qualify for conventional financing and can help sellers earn interest income.
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