Finance
In Minnesota, a seller who wants to help a buyer qualify for a larger loan might offer to 'carry back' a second mortgage. This means:
AThe seller takes the property back from the buyer
BThe seller provides a second mortgage to the buyer as part of the purchase price, in addition to the buyer's first mortgage✓ Correct
CThe seller pays down the buyer's first mortgage
DThe seller reduces the price to help the buyer qualify
Explanation
In a seller carryback, the seller provides a second mortgage to help bridge a financing gap. For example, if the buyer's first mortgage covers 80% and the buyer has 10% down, the seller might carry a 10% second mortgage. This allows the transaction to close without the buyer needing more cash. Lenders must approve secondary financing.
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